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Hedge fund manager Pierre Andurand, one of the world’s most famous commodity traders, believes that as supply struggles to keep up, copper prices will continue to rise for a long time and may nearly quadruple in the next few years to reach $40,000/ Ton. Demand surged.
French fund managers told Caijing Financial Times On Friday, he argued that demand for copper will outstrip supply in the second half of the decade and that copper will play a central role in the global energy transition, sending copper prices up 28% year to date to a record high of $11,104.50/metric ton earlier this week. time time.
“Our copper demand growth will double due to the electrification of the world, including electric vehicles, solar panels, wind farms, but also military uses and data centers,” Andurand said. Financial Times.
Andurand is also bullish on other commodities, including aluminum, which he believes will continue to rise for similar reasons to copper as it can displace the red metal, but he no longer expects crude oil prices to rise significantly.
“Geopolitical risks like Russia and Gaza have not had an impact on supply, so I think that’s why oil prices are relatively stable, and I expect oil prices to stay that way,” he said.
U.S. copper futures fell for the first time this week after rising for eight consecutive weeks, with the front-month Comex May contract (HG1:COM) -5.5% This week it reached $4.7785/MMBtu.
In addition, the front month May Comex Gold (XAUUSD:CUR) ended -3.3% May Comex silver (XAGUSD:CUR) closed this week at $2,332.50 per ounce. -2.3% to $30.330 per ounce.
ETF: (NYSE:CPER), (NYSE: COPX), (OTC:JJCTF), (GLD), (GDX), (GDXJ), (JAU), (NUGT), (PHYS), (GLDM), (AAAU), (SCHOOL), (BAR), (OUNZ ), (SLV), (PSLV), (SIVR), (SIL), (SILJ)
Macquarie analysts said growth in global copper demand was offset by slower demand growth in China, which in turn changed investor sentiment towards copper.
“Given current fundamental indicators, this move appears overdone and the risk of a sharp correction, even if it has not yet begun, is very high,” the company said.
