Thinking about snapping up ASX copper shares? Now could be the time to do so.
One expert is reportedly snapping up the metal and stocks that produce it.
That's despite the three-month copper contract having fallen from approximately US$9,700 a tonne this time last year to around US$7,850 per tonne at Friday's close on the London Metal Exchange.
So, why might ASX copper-producing shares be worth looking at right now? Let's find out.
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Is the future bright for ASX copper shares?
Newton portfolio manager Aron Pataki is reportedly gearing up for hard times. The fundie is leaning away from global equities, reports the Australian Financial Review, but he is doubling down on one sector.
That is commodities. And copper in particular.
He likes the metal as an inflation hedge, protecting shareholder value in this inflationary and rising interest rate environment. On top of that, demand is expected to take off in coming years.
Pataki said, courtesy of the publication:
Copper is a key ingredient in the electrification of the economy, in electric vehicles, smart grids, etc.
We think the demand will be very strong over the next couple of years, while supply is going to be relatively limited. Commissioning a new mine takes five to seven years. There have been some new ones commissioned, but we don't think supply will ramp up.
It's a similar view as that offered by S&P Global earlier this year.
It found demand for copper will likely double over the coming decade as the world works to achieve net-zero emissions by 2050, likely resulting in the deadline being missed.
Perhaps unsurprisingly then, copper has been a major talking point among those interested in ASX shares lately.
S&P/ASX 200 Index (ASX: XJO) resources giant BHP Group Ltd (ASX: BHP) posed a $25 per share bid for copper pureplay OZ Minerals Limited (ASX: OZL) last month. The offer was quickly rejected.
Meanwhile, Rio Tinto Limited (ASX: RIO) is working to snap up the remaining stake in Turquoise Hill. Turquoise Hill is the co-owner of the Oyu Tolgoi copper-gold mine.
Finally, ASX 200 copper favourite Sandfire Resources Ltd (ASX: SFR) appears to be having a moment in the sun. Its share price lifted nearly 9% over the course of last week.
