Among the industrial metals, the mood for copper is positive among many analysts.
Assuming a soft landing for the US economy and five interest rate cuts by the Fed, the economy should grow solidly. This assumes that core inflation slows down. Among the industrial metals, copper in particular should then shine. This is because a loose Fed policy and a turnaround in the global manufacturing industry are the driving forces. There could be a shortage of copper in particular. Copper mine production is stagnating in Chile, an important copper-producing country. According to data from the state copper authority Cochilco, there is no upward trend in production volumes among the heavyweights of the copper industry. On the contrary. The company produced 16% less copper in January 2024 than in January 2023.
Other copper producers in the country are still more or less compensating for this. And Chile accounts for around 23% of total global copper production. Not only the gold price benefits from US interest rate speculation, but also copper. On the demand side, there is justified hope that China, an important copper consumer, will support the domestic economy with further financial aid. This financial aid should be used by local governments for infrastructure spending. If the Chinese construction sector recovers, demand for copper can be expected to pick up. Analysts are forecasting this for the second half of the year in particular.
In India, too, things are not looking good for copper supplies. India's highest court has rejected the reopening of a copper smelter with an annual capacity of 400,000 tons. The smelter had to be shut down back in 2018. The reason was groundwater contamination. So, if you want to bet on copper, you should take a look at Aurania Resources or Osisko Gold Royalties in the royalty sector.
Aurania Resources - https://www.commodity-tv.com/ondemand/companies/profil/aurania-resources-ltd/ - owns gold and copper in its The Lost Cities Cutucu project in the Andes in Peru.
Osisko Gold Royalties - https://www.commodity-tv.com/ondemand/companies/profil/osisko-gold-royalties-ltd/ - has more than 180 gold and copper royalties and streams.
Current corporate information and press releases from Aurania Resources (- https://www.resource-capital.ch/en/companies/aurania-resources-ltd/ -) and Osisko Gold Royalties (- https://www.resource-capital.ch/en/companies/osisko-gold-royalties-ltd/ -).
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