From Morningstar: 2024-04-30 04:18:00

Copper is currently at two-year highs due to supply struggles and inflation fears. Ivanhoe Mines cuts production by 6.5% in Congo, China reduces output by 5-10%. Political factors, like Russia ban, add volatility. BHP’s $39 billion bid for Anglo American boosts demand. Price could reach $11,000 per tonne.

Copper demand rises as global visible stocks drop 41%. China drives consumption, while India explores copper deposits. Decarbonisation efforts increase demand for copper in renewable energy. High electrical conductivity makes copper ideal for green economy. AI data centres fuel additional demand for copper.

Investing in copper ETCs is a way to gain exposure to commodity prices. European investors can choose from a few ETCs focused on copper or diversified industrial metal baskets. Different benchmarks and methodologies impact risk-return ratio. Contango effect and rolling of futures contracts affect value of ETCs. RICI Enhanced benchmarks aim to minimize contango effect and seasonal cycles are considered in futures contracts replacement.



Read more at Morningstar: Is Copper Entering a New Supercycle?