Precious metals are gold, silver and platinum. What if we told ya that copper scrap metal is fast becoming the next big thing?
When will the scrap copper price go up?
According to Goldman Sachs’ analysis, copper will reach $51,000 per metric tonne by 2025.
Why is copper scrap expected to rise so rapidly? We will discuss the reasons for an increase in copper demand and the potential benefits.
Let’s start with copper in our day and age.
The demand for copper is increasing as a result of the transition to renewable energy
There has been an explosion in news coverage about the positive effects renewable energy can have on the current climate change.
New resources are being discovered as we discover new ways to convert renewable energy. Copper is one of these resources!
As copper is an essential ingredient in the production:
- Solar panels
- Wind turbines
- Batteries for electric vehicle (EV)
- EV charging stations
- Alternatives to clean energy
It is expected that there will be an increase of copper demand to 8.7 million tonnes by 2030 due to the increasing number of corporations switching to renewable energy.
Unable to sustainably meet Copper Demand
You might be thinking “Renewable Energy is a good idea, right?” It is. However, when the demand for a particular element grows, it is necessary to have a sufficient supply to meet that demand.
Problem? These copper demands are not being met efficiently. Here’s why.
It is difficult to sustainably unearth more copper
To get more copper you must mine or unearth the copper orebodies. We begin to exhaust all readily accessible copper orebodies as we continue to mine more copper. We are left with the hardest places to mine more copper. These include the Arctic and the deep sea.
It becomes more difficult to find copper in the ground, and it is also harder to mine it sustainably. These orebodies, which are of lower quality and contain toxins such as arsenic that can cause cancer and damage the environment.
Copper mine operations face opposition as well.
Opposition to Mining leads to legal battles
Due to the difficulty of mining copper sustainably, there is a rise in public outcry against these projects. Projects are also being delayed or cancelled by political opposition from both local and international governments.
The outcry stems from the fact that approximately half of the remaining orebodies are located near Indigenous people’s lands, or protected areas under biodiversity conservation. Copper orebodies that remain are usually located in areas already facing a water crisis are the only ones left. The miner is now competing with other industries for water resources.
Scrap copper prices in sydney will likely rise as miners are unable to keep up demand.
Copper Scrap Prices may be on the Rise (Supply and Demand).
Prices will rise when there is high demand but low supply. In this case, it means that the supply is very difficult to obtain and can be expensive. Copper is facing a significant supply gap of more than 8 million tonnes between now and 2030.
Copper prices have increased by almost 80% in 2021 and it doesn’t look like they will slow down anytime soon.
What does all this mean?
Copper: The Scrap Metal of the Future
Although buying new copper is getting more expensive, there’s an alternative: copper scrap metal.
Recycling metal becomes even more important when there are scarce resources.
As a way of saving money, you can either trade in your copper scrap metal or purchase recycled copper. This has both a positive economic and environmental impact. Continue reading to find out how scrapping copper can be beneficial for you.
Recycled copper has environmental benefits
There are many ways that recycling copper can benefit the environment. We can run out of resources quickly and endanger the environment while trying to meet the demand for these metals. As we mentioned, the majority of copper-mining locations would pose major environmental problems.
These metals can also be toxic if they are improperly disposed of and end up in landfills.
Recycling copper metal scrap is a great way to keep metal out of landfills and leave the wild places of our Earth unmined.
Economic Benefits of Recycled copper
Recycling scrap metal such as copper can help your business save money by allowing you to avoid paying taxes and reducing disposal costs. It can help both the national and global economies.
As recycling efforts increase demand and supply will rise. This will lead to a decrease in copper’s cost.
How can you reap the many benefits of copper scrap metal?
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