Copper demand set to continue to surge as the world moves towards a greener society.
Week commencing: 10/05/2021 Issue: 6
In the recent weeks there has been a large focus on the supply issues within the Copper industry, whereas there has been less of a focus on future plans which could be having a large impact on the increased demand of the application of Copper. After Copper continues to hit new record highs, bullish investors suggest that the demand for Copper will continue to increase further as the world recovers from COVID-19 and investments into future projects ramp up. But what will Copper’s future demand model look like?
As the world moves towards a greener and cleaner society, demand for Copper is increasing rapidly. Electric and hybrid vehicles have reached a new stage of development and are set to become widely popular in the near future. Copper has been noticed as an essential metal used in the electrical manufacturing vehicle process, for example Tesla car production, a leading electrical vehicle seller. The UK government are passionate about moving to a greener footprint and setting the stage for up to 70% of new car sales to be ultra-low emission by 2030. Another movement to a greener carbon footprint is the focus on clean power generation and its benefits to the world such as, lower emissions and substantial development.
Copper is critical to today’s modern economy, its unique properties allow for urbanisation at lower costs. Wind farms can contain between 4 to 15 million lbs of Copper and solar photovoltaic farms can necessitate up to 9,000 lbs of Copper per megawatt. The transition to clean energy and economic development indicates that Copper is critical for the future. Copper recycling uses up to 90% less energy than mining and can offer the same quality and benefits as newly mined Copper, which will become more prominent as the world takes a step closer to a greener footprint. Copper continues to find it’s way into more applications, such as the healthcare industry, as people begin to acknowledge its antimicrobial properties.
Copper is essential to health and its applications in healthcare continue to grow, increasing the demand of Copper. The outbreak of the COVID-19 pandemic has played a factor in the increased use of Copper to reduce infectious bacteria alongside regular cleaning procedures, minimising the risk of spreading infection in public areas such as, hospitals. Within hospitals Copper is used to make high- touch surfaces such as bed handles or doorknobs safer. The antimicrobial properties of Copper eliminates up to 99.9% of certain bacteria within two hours of exposure on touch surfaces.
The consistent increase in Copper price, which has more than doubled in price from its lows during the COVID-19 pandemic, has been fuelled by a worldwide push for decarbonisation. Leading investors have suggested that decarbonisation is not possible without Copper, highlighting its value to upcoming modernisation. The unique properties and affordability of Copper allows for widespread application which continue to grow as the world shifts towards clean energy and a small carbon footprint. American sources suggest that against the background of increasing demand and supply deficit, Copper prices may reach $20,000 per ton by 2025.
How can ILF help you?
ILF continue to provide customers with the best available supply of Copper, meeting customers’ demands and maintaining high inventory levels. ILF are excited for what the future of the Copper industry holds and supporting customers with their new demand.
Have you had an increase of Copper demand? If you have been impacted, we would love to hear from you and find a solution to your challenges.
Milly Edwards
Sales and Marketing Executive: Responsible for creating content for ILF's social media channels, website, print media and promotional work.
