Copper prices sharply shot up the past few weeks with the intensifying Ukraine crisis. Similarly to all metals, the rise is due to the expectations of supply hardships. Rio Tinto’s CEO recently declared the possibility of a three-year supply deficit. The following copper stocks should be on your radar.
Glencore (LON: GLEN), a leading firm with its headquarters in Switzerland, deals with the most significant commodities like Copper, nickel, coal, and cobalt. It also trades millions of oil barrels daily.
This diversity is the reason it’s best to buy Glencore. For instance, nickel prices have crazily hiked the past couple of weeks, forcing London and Shanghai to hold trading immediately.
Coal went up due to other firms’ under-investing. Crude oil prices rose to over $100 and are close to their highest.
Co-currently, copper prices rose due to increased demand and low production. Hence, Glencore’s share price may continue to go up in the long term. Moreover, it comes second as the largest copper producer after Codelco.
BHP (LON: BHP) is the largest mining company globally, with shares trading in the US, London, and Sydney.
BHP’s production includes the leading and highly demanded commodities; petroleum, Copper, iron ore, nickel, coal, and potash. For instance, Russia sanctions will cause a rise in potash demand, a material crucial to fertilizer manufacturing.
In the past two years, there has been a rise in BHP business, and it’s possible that increased copper prices to mean more profits and dividends.
Freeport-mcmoran (NYSE: FCX) is a top copper mining firm specializing in Copper, unlike the other two; thus, the surging stock prices to the highest levels they have been. It offers services in South and North America and Indonesia.
The company has grown fast. For instance, it increased its revenue from over $20 billion in 2020 to over $21 billion in 2021. this duration saw it grow its net income from about $599 million to over $4.3 billion.