China consumes more than 50% of the global copper supply and is a net importer. Last week it set up its own yuan-denominated copper exchange based in Shanghai for foreign investors. We saw a similar move with the Shanghai Gold Exchange established in 2002, which has now become one of the world’s largest gold exchanges.
As a natural leader to electrify its economy and reduce pollution, China is setting itself up for a very important future that requires copper. We are just seeing the beginning. Notably, China increased its imports this year over 2019 (possibly stockpiling) which has supported copper prices and has positively offset a drop in demand from the rest of the world. When the rest of the world turns back on, and spending for electrification infrastructure begins, it may be the next leg up for copper.
Camino Corp. is developing its copper business in the worlds second largest copper producer, Peru.
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Jay Chmelauskas, CEO