More investment on the way for copper as hedge funds go long

The evidence is growing that copper and zinc will be ‘in’ when it comes to base metals in 2024.

More funds have confirmed they are looking to invest in copper, and Gautam Adani, who likes ‘scale’, is about to build the world’s largest single site copper manufacturing facility.

In probably the best news for mining company investors, Bloomberg reported that some of the biggest hedge fund managers were betting big on copper.

Funds including Tribeca Investment Partners, Terra Capital and Anaconda Invest all said copper was undervalued.

Matthew Langsford, who runs a A$180 million natural resources fund at Sydney-based Terra Capital, was reported as saying he now sees “at least 50% upside” in prices by the end of 2024.

The fund managers acknowledged setbacks at key mines worldwide, meaning an ‘’excess of supply has now morphed into a likely deficit’’.

Full story on here.

That sentiment was backed up by a Wall Street Journal article recently that reported gold miners celebrating record prices were plowing the windfall into copper this year.

Article here.

Meanwhile, the biggest investment in copper is coming from the Adani Group, led by billionaire Gautam Adani, with a US $1.2 billion plan for the world’s largest single-location copper manufacturing plant in Mundra, Gujarat.

Planned for a March start to construction, it would have a full-scale 1 million tonnes capacity by 2028-29.

The story was covered by DNA India and Kutch Copper Ltd managing director Vinay Prakash said: “Their aim is to be the world’s largest copper smelting complex by 2030.’’

He said India’s per capita copper consumption was estimated at around 0.6 kg compared with the global average of 3.2 kg. “India’s drive towards clean energy systems, increasing penetration of electric vehicles and a host of associated applications are expected to double the domestic copper demand by 2030.’’

Full article here.

Another recent media piece on the rise of copper was in Forbes magazine, here.

On zinc, another base metal right in focus in 2024, Japanese battery manufacturers have started testing it as a replacement for lithium.

Nikkei Asia reported Sharp is developing a zinc-air rechargeable battery, aiming to start trials in 2025. Energy density per unit volume is similar to that of mainstream lithium-ion batteries, but its roughly 20-year service life is about twice as long.

Japanese battery maker FDK is developing a nickel-zinc battery and will begin pilot production later this year.

Full article here.


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