Analyst: Copper prices need to increase significantly in order to encourage investments in mines.

Analysts at Shaw and Partners have stated in their report that copper prices "need to increase significantly" in order to stimulate enough investment in new mines to meet demand. These analysts suggest that increasing new copper supply is challenging, and production costs may also rise. "The cost of expanding existing mines is increasing, and new projects often involve lower grade ores and higher development costs," they said. "In addition, the slow pace of new mine discoveries, as well as increasingly strict environmental and social standards, are creating bottlenecks that hinder the rapid increase in supply to meet the growing demand." Shaw predicts that the average copper price next year will be $10,524 per ton, while the market average expectation is $9,786 per ton. The brokerage firm's preferred copper industry stocks are AIC Mines, Aurelia Metals, and Sunstone Metals.