Duncan Wanblad, the CEO of Anglo American, recently called copper an “emotional metal,” highlighting its continued reliance on China’s economic outlook, despite the expected significant increase in demand as the world moves towards decarbonization. Wanblad noted that market pressures could intensify in the second half of the year, largely depending on the state of the Chinese economy.
In 2024, copper prices soared to record highs. This is also due to the closure of a major copper mine in Panama and reduced production in Peru, raising concerns about a potential global copper shortage.
Investors are showing strong interest in commodities such as copper, gold, and aluminum. According to Goldman Sachs, returns on such investments in 2024 could reach 15%. This is attributed to the anticipated lowering of interest rates in the US and Europe, which is expected to support industrial and consumer demand.