InvestorQ : What is driving the surge in copper stocks like Hindalco, Hindustan Copper and Bhagyanagar?
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What is driving the surge in copper stocks like Hindalco, Hindustan Copper and Bhagyanagar?

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Deepa Salunkhe answered.
3 months ago
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Copper as a metal is having a rally of a life time with the price crossing $10,000/tonne on the LME. Analysts are now pegging copper prices to cross $20,000/tonne by the year 2024. Previously, copper had peaked out in the 2011 and at that time the up-cycle in demand was driven to a great extent by Chinese demand.

This time the demand is likely to come from the US, EU and China. While it will be driven by infrastructure investments and a recovery in growth, a major contribution to demand is also expected from alternate power and green cars. It is estimated that Electric cars use 4-times more copper than regular cars. There are no signs of fresh capacities coming in short-term.

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