4 Stocks to Buy as Copper Prices Near Record Highs
StockNews
Published Oct 22, 2021 12:26PM ET
Updated Oct 22, 2021 01:30PM ET
4 Stocks to Buy as Copper Prices Near Record Highs
A current supply-demand imbalance is driving copper prices to record highs. With rising demand from major end-markets, such as automotive and construction, the industry should benefit handsomely in the near term. Therefore, we think it could be wise to bet now on fundamentally sound copper-related stocks BHP (BHP), Rio Tinto (NYSE:RIO), Glencore (OTC:GLNCY), and Southern Copper (NYSE:SCCO). Read on for an examination of these names.A rapid rebound of copper prices following the pandemic-led economic slowdown has been driven primarily by high demand and a supply crunch. Copper is currently trading near-record highs, just below $10,000 per tonne, as inventories have fallen to 15,225 tonnes, their lowest level since 1974.
This surge in copper prices has fostered heightened investor interest in this space, as is evident in the United States Copper Index Fund’s (CPER) 13% gains over the past month, versus SPDR S&P 500 ETF Trust’s (SPY) 3.9% returns.
And the demand for copper is expected to increase in the coming months with the increasing demand for copper by major end markets, such as automotive and construction. President Biden’s $1 trillion bipartisan infrastructure plan is also expected to boost the demand for copper. Given this backdrop, we think it could be wise to scoop up the shares of BHP Group (NYSE:BHP), Rio Tinto Group (RIO), Glencore plc (GLNCY), and Southern Copper Corporation (SCCO), which are well-positioned to benefit from the red-hot copper market.
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