Copper Is Going To Be The Metal Of The Future
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Alaina
- . October 10, 2022
- . Update: November 11, 2022 12:42 am
We are moving towards more sustainable methods of power consumption and one of the most important raw materials that will make it work for Europe is the use of copper. It is known that indeed the red metal a great conductor of heat after silver. But it suffers from a weakening price which is something the industry veterans have reasons to worry about.
In 2021, the metal saw huge price soars. It led to huge investments, increase in jobs and the sorts, only to be hit by the huge dip later this year. According to ING commodities strategist Ewa Manthey, “Despite the ongoing supply disruptions, concerns over macro headwinds and recession fears are dominating copper’s sentiment and prices for now.”
As the world moves towards new systems, there is more need for the use of copper. It is becoming more important as it is becoming a vital component for electric wiring and motors. As electricity rises from 20 per cent of final energy use to 50 per cent after mid-century, the need for the red metal will grow.
Prices are therefore need to be kept balanced. However, economists also feel that there is a worry about China’s ailing economy that will also keep the metal under pressure until the government eases its strict covid-19 restrictions.
There are other challenges to be mitigated. For example, long-distance transmission will be needed to bring electricity from remote wind, solar and hydroelectric sites. Stronger local grids will be required to accommodate electric vehicle charging and rooftop solar installations. All this is going to be needing a lot more involvement of copper element.
Unlike many speciality minerals, copper has few good substitutes. Aluminium can replace it in some applications, such as transmission wires, but is less conductive, bulkier, more energy-intensive to produce and needs more maintenance.
Most of copper’s uses today are not energy transition-related, unlike the emerging niche minerals. And some other useful energy transition metals — including silver, gold, nickel and tellurium — are by-products or found in association with copper.
