Copper adds spark to a grey market

Copper is one of few minerals sticking its hand up above the pall of disappointment that hangs over resource stocks. Along with uranium the red metal was among only a few showing signs of movement said analyst and Minelife founding director Gavin Wendt. Copper has rebounded to early 2022 values after what’s been a long winded spruik from analysts regarding the latent demand inherent in the rush to the new economy which relies on renewable energy. There was a lot of anticipation around copper because it's a key component going forward in terms of the energy transition,” said Mr Wendt. “That hasn't changed over the last five years, but of course in the near term, sometimes markets get a little bit concerned and near term supply demand factors come into play," Mr Wendt said. “That's why we saw price fall away and the latter part of 2023 and the early part of 2024, but it's starting to consolidate again. “But we are starting to see some, I guess you'd call it bargain hunting in the copper space as to how significant that bargain hunting is remains to be seen because investors still generally are a little bit gun shy about committing in a major way to the resource space.” The AFR reported last month that copper influence was increasing to the point where it had a bigger influence on the Australian dollar than iron ore. Related: Copper upstages iron ore’s influence on the Australian dollar Whether or not copper’s rise at this stage was speculative was a story yet to be played out said Mr Wendt. “While the underlying commodity is recovering from its recent lows and there is a lot of anticipation around copper because it's a key component going forward in terms of the energy transition. “That hasn't changed over the last five years, but of course in the near term, sometimes markets get a little bit concerned and near term supply demand factors come into play. “That's why we saw price fall away and the latter part of 2023 and the early part of 2024, but it's starting to consolidate again. “But we are starting to see some, I guess you'd call it bargain hunting in the copper space as to how significant that bargain hunting is remains to be seen because investors still generally are a little bit gun shy about committing in a major way to the resource space.” Australia holds about 13% of the world's copper resources which is second only to Chile (25%) says website Market Index. The largest domestic resources are at Olympic Dam in South Australia and Mount Isa in North West Queensland.

Copper adds spark to a grey market

Industry Queensland

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