Please ensure Javascript is enabled for purposes of website accessibility

Copper prices, demand could edge upwards

  • Tweet
  • Share on LinkedIn
  • Share via email
  • Print
  • Download

May 2023

Copper prices could be on the rise as demand for the metal continues to grow. Here, Newton Investment Management portfolio manager Al Chu explains why there may be opportunity in the metals market.

When some people look at a penny, they may think it’s essentially worthless – tossing the coin into a fountain or even the trash. However, pennies are coated in a material that is becoming increasingly valuable.

Copper is used for everything from electrical wiring and plumbing to industrial machinery. The wide range of uses could push copper prices upwards, possibly making the metal the next oil of investing, according to Chu.

“If we think about decarbonization, whether it's EV or smart grid or solar or wind, the one material you need is copper,” says Chu.

Copper isn’t the only metal that could be in short supply, notes Chu, pointing out that the metals market in general may be poised for growth.

“When I see the 10, 20, 30-year trend, the generational shift that we see in the metals market, it's not just copper, it's aluminum, it's lithium, it's nickel, it's cobalt, it's the immense amount of metals and materials you need to decarbonize or to undergo indigenization,” says Chu. “That is going to be one of the most attractive areas going on in the in the near term and in the future.”

All investments involve risk including loss of principal. Certain investments involve greater or unique risks.

Commodities contain heightened risk including market, political, regulatory, and natural conditions, and may not be appropriate for all investors. 

This material has been provided for informational purposes only and should not be construed as investment advice or a recommendation of any particular investment product, strategy, investment manager or account arrangement, and should not serve as a primary basis for investment decisions. Prospective investors should consult a legal, tax or financial professional in order to determine whether any investment product, strategy or service is appropriate for their particular circumstances. Views expressed are those of the author stated and do not reflect views of other managers or the firm overall. Views are current as of the date of this publication and subject to change. The information is based on current market conditions, which will fluctuate and may be superseded by subsequent market events or for other reasons. References to specific securities, asset classes and financial markets are for illustrative purposes only and are not intended to be and should not be interpreted as recommendations. Information contained herein has been obtained from sources believed to be reliable, but not guaranteed. No part of this material may be reproduced in any form, or referred to in any other publication, without express written permission.

“Newton” and/or the “Newton Investment Management” brand refers to the following group of affiliated companies: Newton Investment Management Limited (NIM) and Newton Investment Management North America, LLC (NIMNA). NIM is incorporated in the United Kingdom (Registered in England no. 1371973) and is authorized and regulated by the Financial Conduct Authority in the conduct of investment business. Both Newton firms are registered with the Securities and Exchange Commission (SEC) in the United States of America as an investment adviser under the Investment Advisers Act of 1940. Newton is a subsidiary of The Bank of New York Mellon Corporation. 

BNY Mellon Investment Management is one of the world’s leading investment management organizations, encompassing BNY Mellon’s affiliated investment management firms and global distribution companies. BNY Mellon is the corporate brand of The Bank of New York Mellon Corporation and may also be used as a generic term to reference the corporation as a whole or its various subsidiaries generally.

©2023 BNY Mellon Securities Corporation, distributor, 240 Greenwich St., New York, NY 10286.