.gif)
Loading
Glencore CEO Ivan Glasenberg told the Qatar Economic Forum that a supply gap is growing in the metals the world needs to replace fossil fuels with renewable energy.
According to Glasenberg, copper supplies need to increase by one million tons per year until 2050 to meet a projected demand of 60 million tons.
“Today, the world consumes 30 million tons of copper per year and by 2050, following this trajectory, we need to produce 60 million tons of copper per year,” he said. “If you look at the history of the last 10 years, we’ve only added 500,000 tons per year.”
Shares of many mining companies have doubled in the past year as policy support measures in advanced economies in response to the covid-19 pandemic have fueled inflation.
Commodities serve as a hedge against inflation, which means their prices should remain strong.
At the same time, the transition to a low-carbon economy and the channeling of stimulus funds into infrastructure is generating demand for commodities.
Copper demand is increasing for use in renewable energy projects and electric vehicles. Prices reached an all-time high above $10,000 per ton in May before falling about $1,500 per ton.
The nickel and cobalt markets are facing similar supply deficits in the coming decades. Glasenberg said nickel supplies need to grow by another 250,000 tons a year from the historical rate of just 100,000 tons.
He predicted that annual nickel demand will rise to 9.2 million tons from the current 2.5 million tons.
