Capstone Mining Corp. (CS.TO)

Copper deficit drives price rally, mining stocks benefit

Copper prices (HG=F) have soared to an 11-month high, fueling a rally in mining stocks. RBC Capital Markets Mining Analyst Sam Crittenden joins Yahoo Finance Live to discuss his bullish outlook on the precious metal. According to Crittenden, the copper rally "has been expected for a few months now." He highlights that supply disruptions during the fourth quarter of 2023 transformed what was anticipated to be a surplus in 2024 into a deficit, which has "driven these higher prices." While sluggish demand from regions like China has been a concern, he notes that as the summer construction season approaches, typically a "strong period," demand concerns could potentially abate, driving copper prices even higher. However, Crittenden explains that the energy transition stands to be the biggest driver of copper demand going forward. For more expert insight and the latest market action, click here to watch this full episode of Yahoo Finance Live. Editor's note: This article was written by Angel Smith