Stock Infographics

Some hints from Copper prices and inventory level

DonkeyStock
Publish date: Fri, 20 May 2022, 04:14 PM
Visual content on financial market and investment trends

Copper has the ability to predict turning points in the global economy because of copper's widespread applications in most sectors of the economy — from homes and factories to electronics and power generation and transmission — demand for copper is often viewed as a reliable leading indicator of economic health. This demand is reflected in the market price of copper.

Earlier this year, industry specialists and analysts had forecasted that copper is arguably the tightest commodity. No matter what technology you use, you're gonna be using electricity and the only thing that can conduct electricity given the rules around the periodic table and the rules of chemistry is copper at the rate we need to conduct it, which means that the demand for copper gonna be there.

Not only is copper going to be incredibly tight, but it's also absolutely essential if we're going to electrify everything and move more energy use off of oil.



Source: iSquare LME Warehouse Inventory

However, the price of copper has been consolidating since 2021 and the inventory level of copper in LME warehouses is starting to increase. In the near term, it could mean that a recession is near. But if we look at this situation from a longer perspective, are we too optimistic to electrify everything and fossil fuel is going to stay for a longer period?

If that happens, our investment thesis should change drastically.

More articles on Stock Infographics
MPHB Capital Privatization: A Questionable Valuation

Created by DonkeyStock | May 28, 2024

Higher offer price for MPHB Capital Bhd ?

DC Healthcare’s Financial Roller Coaster

Created by DonkeyStock | May 27, 2024

DC Healthcare Bhd has delivered a worsening financial result

These investors are mastering the real estate game.

Created by DonkeyStock | Jan 04, 2024

Property investing by these visionary Singapore-based companies

Why Guan Chong Bhd share price reach Covid 19 low ?

Created by DonkeyStock | Jan 03, 2024

Discover the factors behind this surge, the challenges faced by top cocoa producers, and the ripple effect on chocolate manufacturers

Companies that delivered significant profit growth in the latest quarter

Created by DonkeyStock | May 03, 2023

Companies listed on Bursa Malaysia with an outstanding quarter results for the month of Apr 2023.

Discussions
Be the first to like this. Showing 0 of 0 comments

Post a Comment