Part 7/10:
Despite the recent fluctuations caused by tariffs, the long-term outlook for copper remains strong. Hines underscored that tariffs do not fundamentally alter the future demand trajectory. Instead, they might exacerbate the supply-demand imbalance by incentivizing cleaning up existing supply chains and encouraging new mine development.
Copper is one of the most abundant metals on Earth, but its geographical distribution and the profitability of mining in different regions influence prices. Countries such as those in South America face rising production costs due to challenging operational conditions, which necessitates higher market prices to make production viable. As prices rise, more investment is likely to flow into higher-cost but necessary supply sources.