Bullish on Copper Prices? Then Buy These 3 Stocks Now By StockNews

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© Reuters. Bullish on Copper Prices? Then Buy These 3 Stocks Now

Rising demand from the industrial and renewable energy sectors should keep driving prices higher. As such, established copper miners Rio Tinto (NYSE:), Vale S.A. (VALE), and Southern Copper (NYSE:) should be significant beneficiaries. Read on.Copper prices hit $4.50 per pound on April 29, the highest price in more than a decade. The rising demand for copper amid rising manufacturing and industrial activities and a global supply crunch has resulted in a 17% increase in copper prices in the first half of 2021, through June 17.

Given copper’s broad applications in electric vehicle (EV) production and the sustainable energy industry, the demand for copper is expected to remain high over the long term. However, underinvestment in the commodity has resulted in a supply crunch. According to Bank of America (NYSE:), copper is expected to exceed $20,000 a ton by 2024, with copper inventories currently hovering levels akin to 15 years ago.

Given this backdrop, we believe leading copper mining stocks Rio Tinto Group (RIO), Vale S.A. ADR (VALE), and Southern Copper Corporation (SCCO) should deliver significant returns in the near term.

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