By March this year, he was stuck holding video calls with clients and colleagues from his home in Geneva. With the world on lockdown, the outlook for most industrial metals looked bleak. Yet even then, Bintas says there were early signs copper could emerge from the crisis even stronger.
If anything, he’s even more bullish today. Demand is bouncing back in China and stimulus packages being unleashed across the developed world promise to transform the long-term outlook -- particularly with spending on copper-intensive green energy infrastructure. The coronavirus has also disrupted mines and delayed new builds, throttling current and future supply.
“Copper is coming out of this crisis differently,” Bintas said by phone from Geneva. “When lockdowns were eased and people started to return to work, we were surprised to see our customers not only taking deliveries of volumes they’d already bought, but requesting more to cover themselves in case there were any further disruptions to supply.”
With the Federal Reserve talking about leaving rates on hold for more than two years, amid considerable economic uncertainty, the demand for stimulative measures is likely to increase. Infrastructure development provides jobs during the construction phase but also creates a lasting group of assets that foster economic growth in future. Of course, that latter point depends on what stimulus money is spent on but the commodity demand during construction is likely to be the same.Click HERE to subscribe to Fuller Treacy Money Back to top