{"id":67568,"date":"2024-04-25T15:58:02","date_gmt":"2024-04-25T20:58:02","guid":{"rendered":"https:\/\/olduvai.ca\/?p=67568"},"modified":"2024-04-25T15:58:20","modified_gmt":"2024-04-25T20:58:20","slug":"the-copper-supply-shortage-is-here","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=67568","title":{"rendered":"The Copper Supply Shortage Is Here"},"content":{"rendered":"
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The Copper Supply Shortage Is Here<\/a><\/h3>\n
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With the AI boom and green energy push fueling fresh copper demand, and with copper mines aging and\u00a0not enough\u00a0projects to match demand with supply, the forecasted\u00a0copper shortage<\/a>\u00a0has finally arrived in earnest. Coupled with persistently high inflation in the US, EU, and elsewhere, I predict the industrial metal will surpass its 2022 top to reach a new all-time high this year:<\/span><\/p>\n

Copper vs USD, 5-Year Graph:<\/strong><\/p>\n

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Source: tradingview.com<\/a><\/p>\n<\/div>\n

The AI boom is stoking the need for more data centers, which will require around a\u00a0million metric tons<\/a>\u00a0of copper by 2030. Meanwhile, this\u00a0year\u2019s\u00a0deficit of 35,000 tons\u00a0is expected\u00a0to rocket up to a staggering\u00a0100,000 tons<\/a>\u00a0in 2025.<\/p>\n

Electric car batteries and EV charging stations also depend on copper, adding to the problem of\u00a0there not being enough\u00a0activity at existing\u00a0mines,\u00a0or the development of new\u00a0ones,\u00a0to satisfy the industrial need. Says Bank of America analyst\u00a0Michael Widmer<\/a>:<\/p>\n

\u201cThe much-discussed lack of mine projects is becoming an increasing issue for copper.\u201d<\/em><\/p><\/blockquote>\n

While many mainstream forecasts depend on a solid economic rebound to keep demand for copper up,\u00a0inflation is here to stay<\/a>, especially as the Fed\u00a0is likely going to\u00a0be forced to cut interest rates at some point this year. Even with just one 2024 rate cut instead of the three that markets originally expected, higher USD prices for copper and other commodities like gold are\u00a0on the way. Out-of-control inflation will drive prices higher even if the oomph gets sucked out of the AI\u00a0bubble,\u00a0or we see other signs of an economic\u00a0\u201chard landing.\u201d\u00a0As Peter Schiff said last month,<\/p>\n

\u201cI think we\u2019re on the verge of the biggest bull market in commodities since the 1970s\u2026They\u2019re cutting rates because they have to avoid a financial crisis \u2014 a banking crisis.\u201d<\/em><\/p><\/blockquote>\n

…click on the above link to read the rest of the article…<\/p>\n

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The Copper Supply Shortage Is Here With the AI boom and green energy push fueling fresh copper demand, and with copper mines aging and\u00a0not enough\u00a0projects to match demand with supply, the forecasted\u00a0copper shortage\u00a0has finally arrived in earnest. Coupled with persistently high inflation in the US, EU, and elsewhere, I predict the industrial metal will surpass […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[2656,33466,13275,17972,16000,10003,18779],"class_list":["post-67568","post","type-post","status-publish","format-standard","hentry","category-economics","tag-copper","tag-copper-shortage","tag-electric-vehicles","tag-electrification","tag-evs","tag-resource-limits","tag-schiffgold"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/67568","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=67568"}],"version-history":[{"count":2,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/67568\/revisions"}],"predecessor-version":[{"id":67570,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/67568\/revisions\/67570"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=67568"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=67568"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=67568"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}