Rua Gold Inc. (TSXV: RUA, OTC: NZAUF, WKN: H8E)
An Emerging Gold Explorer with Two Highly Prospective Land Packages in New Zealand’s historical gold fields.
Under favorable macroeconomic conditions and tighter market fundamentals, analysts predict that copper prices may reach an all-time high in the fourth quarter of 2024, with an average price of $10,265 per ton.
Key factors driving the price surge include anticipated interest rate cuts by the Federal Reserve and China’s introduction of a massive stimulus plan. Announced in September 2024, this stimulus plan will inject 3.95 trillion yuan (approximately $560 billion) into the economy, equivalent to over 3% of China’s GDP.
In addition to macroeconomic factors, seasonal trends and speculative positioning are expected to further drive up copper prices in the fourth quarter of 2024. Historically, the fourth quarter has been the strongest period for copper prices, with production cuts by smelters and increasing demand from the Chinese physical market likely tightening supply.
Due to the growing demand for copper associated with the global energy transition, analysts maintain a long-term bullish outlook on copper prices. By 2025, as supply tightens and demand in Europe recovers, the premium for Rotterdam A-grade cathode copper is expected to rise by 25%.
However, despite the growing demand for green energy projects, the overall copper market in Europe remains sluggish, with the largest consuming country, Germany, facing issues of weak demand in manufacturing, the automotive sector, and construction.
In the United States, optimism regarding long-term copper demand remains strong due to expected supply imbalances and the increasing demand for copper from green energy projects.
In the area of energy transition, copper demand is expected to grow at a stronger compound annual growth rate of 10.7%, driven by electric vehicles (14.3%), solar energy (5.6%), and wind energy (9.3%). Traditional industries are projected to see more modest growth, with a rate of 1.4%.
On Friday (October 11, local time), the price of copper was $9,548 per ton ($4.33 per pound), an increase of 12% since the beginning of the year, but still below the peak of over $11,000 per ton in May.
