Copper has been treading water in 2018 after a jump of over 30% in 2017. It is highly geared to global growth. Fears of a trade war have dented confidence in copperof late, but the longer-term outlook is encouraging. Demand is climbing steadily as China, the top consumer, continues to develop rapidly, while the shift towards renewable-energy technologies is also key: the average electric vehicle contains 85 kilograms of copper, compared with 25 in a normal car, notes Richard Mills on The Market Oracle. With too few new mines in the pipeline to cover the likely growth in demand, the supply deficit will grow steadily wider from 2020 onwards.
Viewpoint
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