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Pierre Andurand, a hedge fund manager and one of the world’s best-known commodity traders, said copper prices are still rising and are nearing their peak. Four times higher at $40,000/ton Supply will not be able to keep up over the next few years, Surging demand.
The French fund manager Financial Times He said on Friday that demand for copper, seen as central to the global energy transition, will outstrip supply in the second half of the century, sending prices up 28% this year to an all-time high of $11,104.50 a tonne earlier this week.
“Demand for copper is set to double as the world electrifies, from electric vehicles, solar panels, wind farms, military applications and data centers,” Andurand said. FT.
Andurand is also bullish on other commodities, including aluminum, which he believes will continue to rise for similar reasons as copper is a substitute for copper, but he no longer sees a big increase in oil prices.
“Geopolitical risks such as Russia and Gaza have not affected supply, so oil prices have remained relatively stable and we expect this to continue,” he said.
U.S. copper futures fell for the first time this week after eight consecutive weeks of gains, while the May Comex contract (HG1:COM) fell -5.5% This week it was $4.7785/MMBtu.
Also, the May contract for Comex gold (XAUUSD:CUR) -3.3% May Comex silver (XAGUSD:CUR) rose to $2,332.50/oz this week. -2.3% Up to $30.330 per ounce.
ETFs: (NYSEARCA:CPER), (NYSEARCA:COPX), (OTC:JJCTF), (GLD), (GDX), (GDXJ), (IAU), (NUGT), (PHYS), (GLDM), (AAAU), (SGOL), (BAR), (OUNZ), (SLV), (PSLV), (SIVR), (SIL), (SILJ)
Macquarie analysts say rising global demand for copper is offset by slowing demand growth in ChinaThis has changed investor sentiment towards copper.
“Given current fundamental indicators, this move appears overdone and the risk of a sharp correction is very high, if not already underway,” the firm said.
