Rocket, copper touched US$4.55 in early trading last night...

Rocket,
copper touched US$4.55 in early trading last night before settling at US$4.48/lb
this is just over US$10,000/tonne.

In the AFR yesterday there was an article on copper....here are some couple of relevant paragraphs...

Copper is also getting a demand boost from the booming data centre sector; Widmer estimates that data centre demand will add 500,000 tonnes to annual copper demand (currently running at just over 26 million tonnes) by 2026.

At the same time, copper is in the midst of what he calls a supply crisis in which “the much-discussed lack of mine projects is finally starting to bite”.
“Copper is at the epicentre of the energy transition, which means that the lack of mine supply growth is being felt acutely. At the same time, demand in the US and Europe should bounce back as economies bottom out; this, along with rising demand from the energy transition, will likely move the copper market into deficit this year,” he says.

What is new compared to just 12 months ago is the demand for copper due to the coming growth in new data centres being built to cater for the AI revolution. In fact the world's biggest and best logistics and distribution centre developer Goodman Group is pivoting away from logistics and going hell for leather into data centres. Goodman has been accelerating this approach over the last two years and is really only now getting serious traction.

Where the extra 500,ooo tonnes require annually for data centres is going to come from is anyone's guess.

The copper train has left the station and if anyone wants to get on board they better be quick as this train ain't slowing down for anyone.

As I have written before it is going to take a US$6.00/Ib copper price, at least, to encourage investment in new supply.

Imagine being in the demand firing line for a commodity? That's where copper is with the EV revolution, the world decarbonisation push and the AI revolution.

How good is it to be a copper investor right now, this very minute?


Cheers......Daicosisgod