Copper prices slumped from a $10,747.50 record high price in May on investors’ concerns surrounding the global economic recovery with the continued spread of the COVID-19 Delta. Also, weakened output from China has contributed to weak momentum in copper prices.
However, copper prices appear to be rebounding on declining exchange inventories and the threat of a supply squeeze. Benchmark copper on the London Metal Exchange (LME) hit $9,268 per tonne, up 2.5%, on October 7. And analysts expect rising demand to fuel a price rally soon. Furthermore, in May Bank of America anticipated that copper prices could hit $20,000 per metric ton by 2025.
Copper is the third most used metal globally, and the ramped-up production of electric vehicles (EVs) should further heighten the demand for copper in the coming months. Thus, we think it could be wise to scoop up fundamentally sound copper stocks, Anglo American plc (NGLOY – Get Rating), and Southern Copper Corporation (SCCO – Get Rating) to take advantage of their current price dip.
London-based NGLOY is a global mining company. The company is focused on securing, developing, and managing a portfolio of high-quality and long-life resource assets, including diamonds, copper, platinum group metals, thermal coal, iron, nickel, and manganese ores, as well as alloys.
In August, NGLOY signed a memorandum of understanding (MOU) with Salzgitter Flachstahl, a manufacturer of a range of high-quality steel products, to collaborate on the decarbonization of the steelmaking industry. The two companies intend to conduct research, explore ways to reduce carbon emissions and develop broader hydrogen technologies. This is aligned with NGLOY’s ambition to achieve carbon neutrality across its operations by 2040.
The company is also planning to work with South Africa’s Department of Science and Innovation (DSI), the South African National Development Institute (SANEDI), Engie, and Bambili Energy, on the implementation of relevant projects to accelerate the development of the hydrogen economy.