These days not many people use copper’s old nickname — Doctor Copper — a title earned by the red metal’s ability to indicate the health of the global economy. If the copper price was rising it meant big construction projects were under way, but copper usage is no longer confined to pipework and flashing on roofs.
It’s a key metal in the transition to green energy and demand keeps rising, with shortages predicted. Commodity producers’ earnings and ratings are often aligned with the strength of demand for their specialist metal, but investors should tread carefully — the per tonne price can spike in the short term, for example over tariff fears, but then fall back.
Even when the price per tonne rises, fatter margins aren’t always in the bag as the cost of extracting metals climbs. There are taxes, licences and environmental concerns to negotiate with governments who are keen to secure higher royalty payments.