The price of copper is up 50% from its March lows. At Plenisfer, we see the copper market to be driven by three factors:
1) The expectation of strong demand supported by the cyclical recovery, urbanisation and moderate GDP growth;
2) the longer-term support we expect for the commodity driven by the ‘electrification’ theme as the drive for sustainability continues;
3) The ongoing supply issue due to lack of investment combined with environmental issues.
We believe the combination of these 3 drivers could lead to a material uptrend in copper price in the coming years.
The recent chart from The International Copper Study Group confirms that the copper market has been undersupplied into summer 2020 and is significantly below both 2019 and the 5-year average supporting our view.
This analysis has been prepared solely for information purposes. This document does not constitute an offer or invitation for the sale or purchase of securities or any assets, business or undertaking described herein and shall not form the basis of any contract. The information set out above should not be relied upon for any purpose. Plenisfer Investment Management SGR S.p.A. has not independently verified any of the information and does not make any representation or warranty, express or implied, as to the accuracy or completeness of the information contained herein and it (including any of its respective directors, partners, employees or advisers or any other person) shall not have, to the extent permitted by law, any liability for the information contained herein or any omissions therefrom or for any reliance that any party may seek to place upon such information. Plenisfer Investment Management SGR S.p.A. undertakes no obligation to provide the recipient with access to any additional information or to update or correct the information. Neither the receipt of this information by any person, nor any information contained herein constitutes, or shall be relied upon as constituting, the giving of investment advice by Plenisfer Investment Management SGR S.p.A. to any such person. Under no circumstances should Plenisfer Investment Management SGR S.p.A. and their shareholders and subsidiaries or any of their employees be directly contacted in connection with this information.
Source: Bloomberg & Plenisfer Investments SGR 3/12/2020
Plenisfer Investments SGR S.p.A.
Via Niccolò Machiavelli 4
34132 Trieste (TS)
Via Sant'Andrea 10/A, 20121 Milano (MI)
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