Low-carbon economy goals in the energy and automotive sectors will lead to a gradual increase in the demand for copper in the next 10 years, market analyst Fitch Solutions predicts.
Currently, most of the demand for copper comes from the construction, manufacturing, and infrastructure sectors. However, this will change in the coming years as auto and energy companies advance their decarbonization goals.
Fitch considers that the demand for green copper will go from representing 5.6pc of total annual consumption in 2021 to reaching 15.7pc in 2030. It would increase from 1.4mn mt this year to 5.4mn mt at the end of the decade, with an average growth of 13pc per year.
The renewable energy sector is the one that requires the most of this metal and currently represents 62pc of green copper consumption and 5.1pc of total world consumption. However, this percentage will decrease as the production of electric vehicles increases.