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Copper is the new oil: Demand for the metal expected to soar this decade

Copper is the new oil: Demand for the metal expected to soar this decade thumbnail

The 2020s are expected to be the strongest phase of volume growth in global demand in history, as per Goldman Sachs.

Goldman Sachs has argued that the critical role will play in achieving the Paris climate goals cannot be understated. Without serious advancements in carbon capture and storage technology in the coming years, the entire path to net zero emissions will have to come from abatement – electrification and renewable energy.

As the most cost-effective conductive material, sits at the heart of capturing, storing and transporting these new sources of energy. In fact, discussions of peak oil demand overlook the fact that without a surge in the use of copper and other key metals, the substitution of renewables for oil will not happen, the report said.

It added that moving the global economy toward net zero emissions remains a core driver of the structural bull market in commodities demand, in which green metals – copper in particular – are critical.

Copper has the necessary physical properties to transform and transmit these sources of energy to their useful final state, such as moving a vehicle or heating a home, the report said.

“Leveraging our equity analysts’ carbonomics analysis across EVs, wind, solar, and battery technology, we quantify this demand in a bottom-up model, estimating that by 2030, copper demand from the transition will grow nearly 600 per cent to 5.4Mt in our base case and 900 per cent to 8.7Mt in the case of hyper adoption of green technologies”, Goldman Sachs said.

“We estimate that by-mid decade this growth in green demand alone will match, and then quickly surpass, the incremental demand China generated during the 2000s. Ripple effects into non-green channels mean the 2020s are expected to be the strongest phase of volume growth in global copper demand in history”, it added.

The copper market as it currently stands is not prepared for this demand environment.

“Moreover, a decade of poor returns and ESG concerns have curtailed investment in future supply growth, bringing the market the closest it’s ever been to peak supply. Indeed, we see the copper market sleepwalking to a classic case of the “Revenge of the old economy”, just as oil did during the 2000s commodity boom”, the report said.

It added that the mining sector remains wary of a pivot towards growth after the price collapse in the mid-2010s severely punished any front-footed producers. Even as have rallied 80 per cent over the last 12 months, there have been no material greenfield project approvals.

Coronavirus has only compounded this dynamic, creating enough uncertainty to freeze companies’ investment decisions. This combination of surging demand and sticky supply has reinforced current deficit conditions and foreshadows large open-ended deficits from mid-decade. We now estimate a long-term supply gap of 8.2Mt by 2030, twice the size of the gap that triggered the bull market in copper in the early 2000s, it added.

The report projects that copper is on a necessary path to $15,000 per ton. “We believe that the most probable path for copper price from here – that both avoids depletion risk and as well as a sharp surplus swing – is to trend into the mid-teens by mid-decade”, Goldman Sachs said.

“We now project copper to average $9,675/t in 2021, $11,875/t in 2022, $12,000/t in 2023 before a material step-up to $14,000/t in 2024 and $15,000/t in 2025. In this context, we upgrade our 12-month target to $11,000/t”, it said.


Business Standard

13 Comments on "Copper is the new oil: Demand for the metal expected to soar this decade"

  1. Theedrich on Sat, 17th Apr 2021 10:44 am 

    Biden the traitor is spewing anti-White hatred. Torrents of it.  Virtually every appointment he makes, every executive order he issues, is aimed at destroying European man.  He fantasizes that he will bring on a New Millennium.  He is right.  It will be a millennium of human sewage and decay, run by megalomaniac oligarchs with oceans of money and fraudulent projects disguised as “science.”  But however cunningly masked, the essence of their government is still nihilism.

    Meanwhile the emperor and his underlings keep the nation locked down so that more mentally disturbed whackos with nothing else to do can commit mass murders like the one a couple of days ago in Indianapolis.  Not to mention that Biden’s new UN Ambassadress Linda Thomas-Greenfield is smearing the country she represents, spouting that “I’ve seen for myself how the original sin of slavery weaved White supremacy into our founding documents and principles.”  (The Negress doesn’t even know the past participle of “weave” is “woven.”  Brilliant.  But of course, that’s OK for Negroes.)  And the Alzheimer-prez expresses “understanding” for the (violent and criminal) subspecies she belongs to that likes to kill, wound and destroy in the larger cities.  Thus the “Lowlife Lives Matter” cult expands and produces more votes for Democrat despots.

    But it is alleged to be “self-evident” that all life forms are equal.  Especially if it results in the termination of the White race.

    And the Wokesters say there is no such thing as demonic possession.

  2. ItIsBestToLetTheHumanRaceGoExtinct on Sat, 17th Apr 2021 1:46 pm 

    Orion Aliens Adrenochrome Harvesting Humans – Ryushin Malone Interview –

    I finally watch this whole document. WWII was an adrenochrome harvesting operation for the Aliens. They tried a second harvesting operation in 2018 but it failed( agenda 21).

    After viewing the video, this support my point the view that the best outcome for the human race is extinction. So my not participating in society will achieved that.

  3. TheSolutionToKanadaProblemIsMassMigrationAlways on Sat, 17th Apr 2021 2:05 pm 

    StarvingLion » Sat 17 Apr 2021, 12:45:01
    Translation: “WTI Oil would be far north of 200 unless WE LOCK’EM DOWN like Sows in a Stall”…

    Bankrupt Kanada shooting anyone leaving their home. Bankrupt Kanada busting down house doors. Bankrupt Kanada defaults on bonds. Bankrupt Kanada distributes ammunition boxes. Bankrupt Kanada burns down all Cities. Bankrupt Kanada deliberately melts down remaining Nuclear Reactors.


    Come on dude, you should Kanaduh better. Kanauduh will increae its immigration target to 2 millions brown shit skin per year. That will fix everthing, LOOOOOOOOOL

  4. FamousDrScanlon on Sat, 17th Apr 2021 3:48 pm 

    Theedrip, it’s not anti-White hatred. It’s anti-White conservative hatred. Get your facts straight.

    It may results white conservatives extermination or just some of you with the rest being subjected to deportation, imprisonment and/or being forced into 2nd class citizens (powerless & impoverished).

    Their divide & rule has worked very well for a long time, but now that it’s getting out of hand their control & profits are at risk.

    The very survival of the American empire & nation are at risk from disunity.

    For America & it’s ruling class to remain a force on the world stage, one set of tribal members needs to be converted or eliminated.

    Guess who’s going bye bye?

    The ‘convert or die’ scenario is as old as civilization.

    The clever convert, survive, pass on their genes & even prosper (see Trump’s daughter & grand-kikes).

    Those primarily ruled by their emotions – principles, morality, blind patriotism, delusions of superiority, don’t farewell in decline–>collapse.

  5. FamousDrScanlon on Sat, 17th Apr 2021 4:03 pm 

    Deplorable Deaths of Despair….

    Epidemiology of suicide

    An estimated 1 million people worldwide die by suicide every year. Globally, suicide ranks among the three leading causes of death among those aged 15–44 years. Attempted suicides are up to 20 times more frequent than completed ones.

    …lead the charge.

  6. peakyeast on Sat, 17th Apr 2021 4:13 pm 

    It is not nihilism, it is annihilism. ;-p

  7. Biden’s hairplug on Sat, 17th Apr 2021 4:17 pm 

    For America & it’s ruling class to remain a force on the world stage, one set of tribal members needs to be converted or eliminated.
    Guess who’s going bye bye?

    Define “a force”?

    Stepped down from “The Force”, eh?

    Strongly-reduced ambition level-alert.

    The Uberkikes Haass, Kissinger and Rothschild admitted defeat…

    …after Bloomberg and Krugmann did so before:

    And now we are preparing for the Grand Finale, the soccer match China-USA.


  8. EliteAreLosers on Sat, 17th Apr 2021 6:24 pm 

    StarvingLion » Sat 17 Apr 2021, 09:23:50 … darpa.html

    Bitcoin Was Created By DARPA

    Bitcoin is not going to work without a stable electrical grid. I am staring to believe the elite/reptilian/Freemason are losers that only care about power, control and money. They have no knowledge how everything is . linked together. They still have told people about peak oil. The elites is still waiting for a Savior. That should tell you something abut. I am writing this while taking a shit.

    Until we massacre and killed by torturer, the reptilians, Freemason, 14 Crown family and the 300. nothing will ever change.

  9. MoreDeepFake on Sat, 17th Apr 2021 11:02 pm 

    Deep fake with reptilians eyes. I guess we will see more and more. Jump 1:21

  10. MoreDeepFakeFaces on Sat, 17th Apr 2021 11:15 pm 

    Finally. the are going against the bullshit globalist agenda:global warning, feminism,…

    These are probably reptilians agenda to control human behaviour.

    Outsiders Weather and Ice Age Watch: Record freezing temperatures felt across the globe

  11. Cloggie on Sun, 18th Apr 2021 4:01 pm 

    Airbus gambles big on hydrogen:

    “Airbus bets billions on hydrogen-powered planes”

    “Airbus Bets on Hydrogen to Deliver Zero-Emission Jets

    The European planemaker has given itself five years to develop an aircraft that doesn’t pollute the sky.”

  12. Dredd on Wed, 21st Apr 2021 1:03 pm 

    “At the start of every disaster movie is a scientist being ignored” (Seaports With Sea Level Change – 14).

  13. Cloggie on Thu, 22nd Apr 2021 3:27 am 

    This could be the future of automotive transport… the more wealthy households own a Carver-like vehicle, the lesser Gods use the autonomous driving taxi:

    “Going Dutch – the Rebirth of the Carver”

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