According to S&P Global Market Intelligence, “A deficit in the copper market is set to deepen over the next several years as supply of the widely used metal struggles to keep up with strong demand from the power and construction sectors, compounded by the proliferation of electric vehicles.”
In addition, Goldman Sachs just called copper a bull market. Please use the sharing tools found via the share button at the top or side of articles. “This current price strength is not an irrational aberration, rather we view it as the first leg of a structural bull market in copper,” said Nicholas Snowdon, analyst at Goldman Sachs, as reported by the Financial Times.
One of the top ways to trade the story is with Freeport-McMoRan Inc. (NYSE:FCX).
While the stock has become technically stretched, it could see higher highs as the copper bull market just begins to take shape.