Published on 24 Feb 2024 on Insider Monkey via Yahoo Finance

11 Best Copper Stocks To Invest In According To Analysts

In this article, we discuss 11 best copper stocks to invest in. If you want to skip our discussion on the copper industry, head over to 5 Best Copper Stocks To Invest In According To Analysts. 

Due to the explosive growth in the electrical and electronics, construction, industrial machinery manufacturing, automotive manufacturing, and infrastructure sectors, the copper market is expected to grow from $166.25 billion in 2023 to $179.84 billion in 2024, exhibiting a compound annual growth rate of 8.2%. Similarly, the copper market is projected to reach $240.52 billion in 2028, indicating a CAGR of 7.5% throughout the forecast period of 2024-28. 

Global copper producers experienced strong demand from China in the first half of the year due to decarbonization efforts, countering a weak property market. However, the future outlook depends on Beijing's stimulus measures. The copper market may shift into a modest, multiyear surplus until 2025, driven by increased mined supply. Similarly, South America's challenging regulatory and political environments may support the market in the midterm. According to Bloomberg Intelligence, near-term copper prices could dip below $8,000 a ton, with marginal cost support around $7,400. Miners anticipate a significant output increase in the second half of this year, with 2024 showing a potential 4-4.5% growth in mined supply. However, Bloomberg suggests that the benefits of greenfield and brownfield projects may start to diminish from 2027. Regulatory approvals could become more protracted, potentially causing a slowdown in mined copper supply growth by the middle of the decade, leading to market deficits by the end of the decade unless development speeds up.