Goldman Sachs Calls Copper as “The New Oil”, Expects Prices to Climb

SEATTLE (Scrap Monster): The commodities analyst from New York-based Goldman Sachs termed copper as “the new oil”. The prices of the commodity are expected to scale new heights over the coming years, it noted.

Jeffrey R. Currie, in his article titled “Copper is the new oil”, noted that copper will turn out to become crucial in replacing oil with renewable energy sources. The market is currently facing a supply crunch. This could boost the price of the red metal by over 60% in the next four years. The copper prices are seen heading towards $15,000 per metric ton, or $6.80 per pound, by 2025. The copper prices may likely rise to touch $4.98 per pound or $11,000 per ton by mid-2022.

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The substitution of renewables for oil will not happen without notable surge in the use of copper and other key metals. The transition to green technologies, even in a slow pace, could boost the copper demand by 600% by 2030. The widespread global transitions could cause demand to rise by up to 900%. It must be noted that copper prices have been hovering around $9,000 per metric ton during mid-April this year.

The metal has a significant role to play in electric vehicle (EV) batteries and other clean energy alternatives under exploration. Meantime, the mining and production sectors do not seem to be ready for a dramatic rise in metal demand.