上周，铜价创下四个月来的最大单周涨幅，上涨6%，突破每吨10000美元。Source: Wall Street See
Analysts believe that even if the price of copper rises, it may not be enough to attract sufficient investment. This is because the development cycle of new mines is usually long, sometimes even exceeding ten years.
As the global transition to clean energy accelerates, the demand for copper continues to rise, but the supply side growth is struggling to keep up.
Last week, copper prices recorded the largest weekly gain in four months, rising by 6% to surpass $10,000 per ton.
Analysts believe that the stimulus measures announced by China last week are the main reason behind this surge, expected to significantly drive the demand in China, the world's largest copper consumer. However, some industry insiders suggest that even with the rise in copper prices, it may not be enough to stimulate investments in large copper mining projects.
Last week, Iván Arriagada, CEO of Chilean copper producer Antofagasta, stated at the Mining Summit of the Financial Times in the United Kingdom that slow government action in granting mining permits has led to a severe imbalance between copper supply and demand.
In the next decade, there may be a copper supply shortage.
Arriagada mentioned that copper – a metal widely used in grids, wires, and electric vehicles – is expected to face shortages, meaning price fluctuations will be 'time to time intense'.
Arriagada stated that in the next ten years, the world will need to increase copper production equivalent to all of Chile's copper output, otherwise the energy transition will face the risk of "delay".
"The copper market has traditionally been very sensitive to short-term or macroeconomic factors."
Last week, China announced stimulus measures, with analysts expecting this to boost global copper consumption demand.
"Volatility will be a continuous feature." Nicholas Snowdon, metal and mining research director at trading company Mercuria, said, "This will be a seesaw."
Surging copper prices have triggered supply concerns, prompting the industry to call for increased mining investments.
Driven by tight supply and demand for wind power, global copper prices surpassed $11,100 per ton in May, reaching a historic high. Despite some subsequent declines, concerns about copper supply shortages persist in the market.
Canadian copper industry giant$Teck Resources (TECK.US)$CEO Jonathan Price stated that the recent stimulus policies implemented by China are expected to boost copper demand.
However, he also pointed out that even with the increase in copper prices, it may not be enough to attract sufficient investments. This is because the development cycle of new mines is typically long:
"Even if the price of copper rises, it may not be enough to incentivize the construction of some large projects needed by the world. This is because establishing new metal mines usually takes several years, sometimes even exceeding ten years."
This has raised concerns about metal supply shortages, including copper and lithium, which are used in critical production areas such as infrastructure and automotive batteries.
CEO Duncan Wanblad of the Anglo-American Resources Group stated that the world "almost unanimously agrees on the importance of copper". For companies restructuring their businesses, "in the short term, copper must be a top priority".
Golden Minerals Company$Newmont (NEM.US)$Chief Development Officer Peter Toth of the company also calls for increased investment in copper mines within the industry, stating:"Both at the industry and societal levels, there must be individuals constructing more copper mines."
Editor / jayden
