Copper needs to reach $12,000 a ton to incentivize large-scale investments in new mines, according to Olivia Markham of the BlackRock World Mining Fund. Current prices are below the required levels to motivate new greenfield production. This forecast is supported by the analysis showing the significant costs miners face in building copper projects. The metal’s price hit a two-year high near $10,000, but further gains are needed to avert major deficits during the energy transition. Demand softness in China has been evident, but the industry consensus suggests that the tightening supply may push prices higher. As the mined copper shortage persists, the question arises whether this marks the beginning of a bullish trend that could see prices break records. Copper traded higher on the London Metal Exchange, nearing a 15% year-to-date gain. Markham’s insights shed light on the financial considerations driving future investments in the copper market.
Copper Prices Need to Reach $12,000/ton for New Mine Investments, Says BlackRock Manager
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