Unprecedented Demand Picture Forming in Copper

Looking forward to tomorrow and the next few years

"Copper is particularly interesting as Electric Vehicles represent a new area of incremental demand. The average E.V. requires 80kg more copper than a regular vehicle. There is also significant copper needed to build out E.V. infrastructure in the power grid as well as battery charging infrastructure.

...A detailed study published by Glencore which looked at how much incremental copper demand would come from this new market. They showed that E.V. would create 4 million tons of new demand by 2030. This is 17% of last years world mine supply and where it will come from is anyone’s guess.

The industry is not going to invest in new capacity until incentivized by much higher prices. The capital intensity of a new ton of metal is about $10,000 per ton.

The copper demand picture is unprecedented in comparison to anything in the last twenty years."

http://palisade-research.com/2018/0...precedented-demand-picture-forming-in-copper/