2 Copper Stocks to Buy on the Dip

imageStock Markets7 minutes ago (Oct 13, 2021 10:01AM ET)

(C) Reuters. 2 Copper Stocks to Buy on the Dip

The ramped-up production of electric vehicles and renewable energy grids is expected to increase the demand for copper. And declining copper inventories amid growing demand should pump up copper prices. Thus, we think it could be wise to invest in fundamentally sound copper stocks Anglo American (LON:AAL) (NGLOY) and Southern Copper (NYSE:SCCO) to take advantage of their current share price dips. Let’s discuss.Copper prices slumped from a $10,747.50 record high price in May on investors’ concerns surrounding the global economic recovery with the continued spread of the COVID-19 Delta. Also, weakened output from China has contributed to weak momentum in copper prices.

However, copper prices appear to be rebounding on declining exchange inventories and the threat of a supply squeeze. Benchmark copper on the London Metal Exchange (LME) hit $9,268 per tonne, up 2.5%, on October 7. And analysts expect rising demand to fuel a price rally soon. Furthermore, in May Bank of America (NYSE:BAC) anticipated that copper prices could hit $20,000 per metric ton by 2025.

Copper is the third most used metal globally, and the ramped-up production of electric vehicles (EVs) should further heighten the demand for copper in the coming months. Thus, we think it could be wise to scoop up fundamentally sound copper stocks, Anglo American plc (NGLOY), and Southern Copper Corporation (SCCO) to take advantage of their current price dip.

Continue reading on StockNews

2 Copper Stocks to Buy on the Dip

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Categories

Subscribe here

Read More

Recent