9 days ago • Posted by William Ramstein
Copper supply could see headwinds on capex slowdown from investors
While we've seen a surging price of copper lately, some analysts are pointing to a falling trend in capex in the copper sector. Commodities have seen the year's most prolific run of form initially on the back of a resurging China, and more recently, other economies--not to forget a supply crunch from mismanaged supply chains. The stimulus is said to have turbo charged the rally alongside the EV revolution. EVs contain 5X more copper than internal combustion engines. New copper projects to continue digging out copper supply, are facing headwinds from shareholders who have now been used to large spreads. FT says, ''It can take up to 10 years to develop a new copper project, assuming all the approvals are in place. So even if the mining industry, swayed by higher prices, decides to open the purse strings now, it may already be too late to prevent large supply deficits from opening up later in the decade.''