BHP CFO: Copper Demand Booming, but Supply Challenges Loom
BHP Chief Financial Officer Vandita Pant emphasized the growing challenges in meeting the rising global demand for copper during a keynote interview at the Financial Times Mining Summit in London. Pant projected a 70% growth in copper demand from now until 2050, driven by traditional industrial sectors as well as new requirements from decarbonization, energy transition, and emerging digital infrastructure such as data centers.
While copper demand is on a positive trajectory, Pant highlighted that supplying the market is becoming increasingly difficult. She pointed to the challenges of declining ore grades, the need for greater technical expertise, and pressure to minimize environmental impacts. Pant warned that a market deficit is expected later in the decade, as miners face a complex balance between generating cash flow, managing stakeholder expectations, and addressing the growing demand for greener and more efficient mining practices.
Gold prices hovered near record highs on Thursday, trading at $2,686.20 per ounce, supported by expectations of further U.S. interest rate cuts and safe-haven demand amid escalating tensions in the Middle East. While gold edged lower by 0.3% in early European trading on Friday, its strong performance this week was driven by concerns over inflation data and geopolitical risks.
Meanwhile, copper surged past $10,000 per metric ton earlier in the week, buoyed by China's economic stimulus efforts and stronger-than-expected U.S. economic growth data. Despite a slight dip of 0.7% on Friday, trading at $10,014.50 per metric ton, the outlook for copper remains strong amid tight supply and rising global demand.
Gold is expected to extend its upward trend, according to RHB Retail Research analyst Joseph Chai. The relative strength index (RSI) continues to point to bullish momentum, with prices likely to break through the $2,700 per ounce resistance level in the near term. Despite a 0.2% dip in spot gold to $2,665.88 per ounce on Friday, Chai predicts that gold’s safe-haven appeal, coupled with favorable economic conditions, will drive further gains.
