ASX copper shares might be in a front-row position if global energy trends continue.
Whilst it has been around for centuries, copper has been hailed as the metal of the future as well. This is thanks to its role in renewable energy and electric vehicles (EVs).
Much has been said of the bronze-coloured metal in recent times. Prices for it have also recently lifted from two-year lows.
The question now is, will ASX copper shares continue to benefit from a surge in copper demand? Let's see what the experts say.
Copper is used in many industries, mainly for its conductive properties. The metal is also critical for wiring, batteries, and wind turbines.
As nations push toward green technologies, copper's demand is forecast to lift, with prices showing recent strength.
Copper prices have lifted from their July 2022 low of US$3.32 per pound to US$4.38 per pound today.
China is the world's top consumer of copper. Recent stimulus measures by its central bank have propped up copper prices in the near term.
Citi upgraded its near-term copper forecast on the back of China's policy measures to stimulate its economy.
According to The Australian, the investment bank believes copper prices could rise to US$10,500 per tonne in the coming weeks.
Goldman Sachs is also bullish on base metals such as copper. In a note last week, the broker said it preferred this segment versus battery metals over the medium term.
Whilst it's good to have perspective on the short-term market movements, true fortunes aren't made overnight in investing.
Over the long term, major producer BHP Group Ltd (ASX: BHP) is also bullish. The miner believes copper will be "an essential building block to modern life" in the future.
The mining giant also projects global copper demand to grow by 70% by 2050, an increase underscored by the 'electrification of things'.
Total global copper demand has grown at a 3.1% compound annual growth rate (CAGR) over the last 75 years—but this growth rate has been slowing. It was only 1.9% over the 15 years to 2021.
Looking to 2035, however, we expect this growth rate to jump back to 2.6% annually
Other ASX copper shares have been busy too lately, indicating a potential uptick in demand.
Copper mining company Sandfire Resources Ltd (ASX: SFR) recently updated its mineral resource estimate at its Motheo Copper Mine in Botswana.
But these pale in comparison to the other mining giants.
BHP also has large copper interests through its Escondida mine in Chile, the largest copper mine in the world.
Meanwhile, Rio Tinto Ltd (ASX: RIO) also has several copper assets, including the world-renowned Oyu Tolgoi in Mongolia.
All companies are well-positioned to benefit from any surge in copper demand into the future.
ASX copper shares could benefit from global energy trends if estimates prove correct. ASX miners have also positioned themselves ready for the future to ride this wave.
In the past twelve months, Sandfire, BHP and Rio Tinto are up 50%, down 2%, and up 6%, respectively.
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