We are moving towards a doubling of demand growth for copper due to the electrification of the world, including electric vehicles, solar panels, wind farms, but also military usage and data centers
Pierre Andurand, chief investment officer at Andurand Capital
Copper demand is expected to double because more and more things are becoming electric, like electric cars, solar panels, wind farms, and even data centers and the military. For Pierre Andurand, who is the head of investments at Andurand Capital
This is what famous hedge fund manager Pierre Andurand is said to have said about the copper market. He said that the price of the important metal would quadruple over the next four years and reach $40,000.
The French fund manager, known for putting a lot of money on commodity markets, told the Financial Times that he thinks demand will outstrip supply of copper in the second half of the 2020s. This will cause the price of copper to rise from its current level of $10,290 per ton. Copper is expected to play a key role in the global energy transition.
“I believe the price could reach $40,000 per ton in the next four years or so.” “That doesn’t mean it will stay that way; we will get a supply response in the end, but it will take more than five years,” Andurand told the Financial Times.
Andurand, who used to work as an oil trader at Goldman Sachs, started the hedge fund BlueGold Capital with Dennis Crema, who used to work for the commodity trading company Vitol. In 2013, he started his own hedge fund called Andurand Capital.
The 47-year-old became famous for making huge triple-digit returns in 2008 by betting on oil prices at BlueGold Capital. He closed the commodities-focused hedge fund in 2012, but his success made him famous.
The investor is known for having a wide range of interests, from kickboxing to kung fu movies. The next year, he started the energy-focused hedge fund Andurand Capital, which now oversees assets worth about $2 billion.
Bloomberg reported that Andurand Capital made a lot of money during COVID-19 and the early stages of the Ukraine war. But in 2023, they lost a lot of money by betting that oil prices CL.1, +1.08% would go up when they were actually staying pretty stable.
Andurand said, “I think oil traders have learned to be very careful about getting too excited about possible supply disruptions.” “I believe we all lost a lot of money because we thought the supply would be interrupted, but it wasn’t.” “You remember how painful that was.”
The manager of the hedge fund also said that he thinks oil prices will stay “relatively stable,” even though he thinks the prices of other goods, like cocoa and aluminum, will go up.
“Geopolitical risks like Russia and Gaza haven’t had an effect on supply. That’s why I think the oil price has been pretty stable, and I expect it to stay that way. Sourand said, “I don’t think oil prices will change a lot.”
