Below is an extract from a very recent webinar paper by Longview...

Below is an extract from a very recent webinar paper by Longview Economics which focused on Oil, Copper, Iron Ore and Gold and how to play these commodities in a super-cycle.

The extraxt is just for copper.

Cheers....D

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Copper:

The next resource put under the microscope was what Waddington calls
"The commodity of the clean energy transition".
Each electric vehicle uses ~2.5x as much copper as an equivalent ICE-powered vehicle. Furthermore, wind and solar power generation also both require more copper than comparable fossil fuel power sources.
To repeat the process applied for pricing Oil, Waddington again asked the question "What drives the price of Copper?" As over 50% of Copper demand originates from China, Waddington hypothesised that it was sentiment over the Chinese economy that was the key driver to price changes.
As a result of slowdowns in various metrics for the Chinese economy, such as house clearing rates, Longview suspects that sentiment for the Chinese economy will stagnate through Q3 and Q4, placing downward pressure on prices.
In the longer term, however, Longview emphasised the role of copper in the clean energy transition as an indicator of copper being a long-term buy.


From the above chart on the left, we can see Longview's extrapolation of demand for Copper (based on current trends versus assuming various governments successfully achieve EV targets). In contrast, the chart on the right demonstrates that Copper reserves have plateaued in recent years. As such, Longview expects that Copper prices will appreciate over the longer term, as demand outstrips supply.