The industrial metal copper and its price are of great significance to the world economy. Investors, as well as policymakers, should always keep an eye on it. The metal is not only crucial for the green transformation of the global economy but is also referred to as "Dr. Copper," serving as a reliable early indicator of the worldwide economic situation. Currently, the price is relatively low considering the medium- to long-term trends. In 2021 and 2022, the copper price reached its highest levels, surpassing the $10,000 per ton mark several times. This was partly due to acute shortages, as copper production also suffered from the pandemic.

Since then, apart from a temporary peak earlier this year driven by overly optimistic expectations of the Chinese economic recovery, there has been a significant cooling down to currently a little above $8,000 per ton. It reflects dim expectations regarding the economy in China, but even more so in Europe and the US. The International Copper Study Group anticipates a significant oversupply of 467,000 tons in 2024. Nevertheless, it is noteworthy that the current copper price is distant from the levels seen in years like 2015/16, when it temporarily fell below $5,000. This indicates the anticipation that copper is poised to assume a progressively more significant role in the required transformations within the global economy.

Furthermore, there is an interesting factor momentarily supporting the price. In Panama, a substantial public outcry, which focuses on environmental concerns, has emerged due to the extension of the license for a copper mine of global significance. It highlights a dilemma for this crucial metal in the green transformation: its production is associated with significant environmental damage. This not only tarnishes the otherwise green slate of the transformation but also poses a potential threat to it. ESG investors are actively steering clear of copper producers, creating a risk of insufficient investments in this crucial sector and, consequently, a possible excessive surge in the copper price over the long term.