On this episode of Research in Action, Director of Research Matt Peron is joined by Research Analyst Chris O’Malley to discuss rising commodity prices. The Russia/Ukraine crisis has been a major driver of price spikes in recent months, but for some commodities, such as copper, structural dynamics could keep prices elevated for longer and drive revenue growth. Investors who are underweight the sector should take note.

Key Takeaways

  • While geopolitics have driven volatility in commodity prices recently, structural issues could keep prices elevated for longer for some materials, particularly copper.
  • Chronic underinvestment by the industry, aging mines, permitting hurdles and other factors are limiting growth of copper production.
  • At the same time, the renewable energy transition could cause demand for copper to double over the decade, giving the metal a sustained tailwind.

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