BlackRock says the upward trend in copper prices can continue due to a very tight market [1].
Copper is a critical component in global infrastructure and the transition to green energy. If supply constraints persist, price volatility could impact manufacturing costs for electronics and electric vehicles worldwide.
Evy Hambro, head of fundamental equities thematic and sector investing at BlackRock, discussed the outlook during an interview with Bloomberg Television [1]. She said that the current market conditions are characterized by limited availability, which supports the possibility of further price increases.
"We are seeing a very tight market," Hambro said [1].
Investors often hesitate to enter a market after a significant price surge. Hambro addressed this sentiment by suggesting that waiting for a correction might result in lost opportunities. She said that ignoring the trend because prices have already risen is a mistake.
"It's very easy to say: well, okay, it's gone up a lot and we should ignore it, and it's too late," Hambro said. "The reality is, if you've done that you've missed out" [1].
The asset manager emphasized that the momentum behind the metal remains strong despite previous gains. Hambro said that the current trajectory is a reliable indicator for those tracking the sector.
"The trend is very much your friend," Hambro said [1].
“"We are seeing a very tight market."”
Copper is often viewed as a bellwether for global economic health because of its wide use in construction and technology. BlackRock's assessment suggests that structural supply deficits are outweighing short-term price concerns, implying that the metal's valuation is driven by fundamental scarcity rather than mere speculation.
