Copper Stocks Rally As Market Tightness Reaches Historic Levels: Analysts See Major Scarcity By 2025
Portfolio Pulse from Piero Cingari
Copper stocks, including those in the Global X Copper Miners ETF (COPX), Southern Copper Corp. (SCCO), and Freeport-McMoRan Inc. (FCX), have surged in March due to tight global copper market conditions. Analysts predict a major scarcity by 2025, driven by low copper stocks, peak mine supply, and strong demand from green technologies. Goldman Sachs remains bullish on copper, anticipating scarcity pricing and significant economic implications.
March 20, 2024 | 4:37 pm
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Global X Copper Miners ETF (COPX) has rallied over 13% in March, marking its best performance since November 2022 due to tight global copper market conditions.
The rally in COPX is directly attributed to the tightness in the global copper market, which is expected to lead to scarcity pricing by 2025. This bullish outlook is supported by analysts and could continue to drive investor interest in copper-related assets.
CONFIDENCE 80
IMPORTANCE 85
RELEVANCE 90
POSITIVE IMPACT
Freeport-McMoRan Inc. (FCX) has witnessed an 18% increase in its stock price month-to-date, driven by the pronounced tightness in the global copper market.
The 18% increase in FCX's stock price this month is closely linked to the tightness in the global copper market. With analysts predicting a scarcity by 2025, FCX is well-positioned to benefit from continued strong demand and potential scarcity pricing.
CONFIDENCE 80
IMPORTANCE 85
RELEVANCE 90
POSITIVE IMPACT
Southern Copper Corp. (SCCO) has seen its stock price rise 25% month-to-date, benefiting from the global copper market tightness.
SCCO's significant stock price increase is a direct result of the tight global copper market conditions. The anticipated scarcity by 2025 and strong demand from green technologies are likely to keep investor interest high in SCCO.
CONFIDENCE 80
IMPORTANCE 85
RELEVANCE 90