Copper are facing structural shortage as demand surge
Copper faces a supply shortage, with the EIA projecting a 30% deficit by 2030. Significant declines in ore grades raise capital costs and lower expected returns for projects, potentially causing output to decrease annually of 2-3% on average through 2030.
Meanwhile, demand continues rising by 3-5% due to the renewable energy transition, which requires more copper for solar PV panels, wind turbines, and transmission lines. Renewable energy projects require more extensive transmission systems to achieve the same capacity. Concurrently, AI infrastructure increases copper requirements for cooling systems and other hardware.
Technically, XCUUSD trades above expanding EMAs with a golden cross, signaling a continuing upward trend.
If XCUUSD remains above support at 5720, price may target the next resistance at 5950.
Conversely, if price fails to hold above 5720, XCUUSD might find support at 5560.
By Van Ha Trinh - Financial Market Strategist at Exness
source https://www.tradingview.com/chart/COPPER/DhRqMRUv-Copper-are-facing-structural-shortage-as-demand-surge/
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