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ENCORE BLANKETS & COPPER PRICE ANALYSIS - 2017

This section will focus on the advantage of signing a copper-aluminum blanket with Encore Wire. We will also highlight expert analysis on copper pricing trends. This page will be frequently updated as relevant articles are published.

 

Click on "Copper Futures" picture below to view current copper pricing.

2018 Copper Chart.jpg
ENCORE COPPER-ALUMINUM BLANKETS

 

Why Roll the Dice, Lock in Pricing for up to 12 Months!

Advantages of Copper Blanket?

  • Eliminate Risk of Lost Revenue - Why roll the dice, lock in pricing when product mark-up margins are favorable.

  • No Need to Wait Until Last Minute to Order Wire - Allows for better planning and execution which will lead to greater profitability.

Why Copper-Aluminum Blanket with Encore?

  • Industry Leading Fill Rate - We ship complete on time, without back orders, better than anyone in the industry!

  • Delivery Without Damage - Encore uses dedicated trucks that drive direct from the factory to eliminate carrier damage.

  • Color Feeder Cable - Encore offers color feeder cable in copper and aluminum without additional cost or delays.

  • Industry Best Labor Savings Products - PullPro, Reel Payoff, Reel Deal, Cyclone Barrels, SmartColorID, MC-LED and much more!

  • SuperSlick Elite® - Reduces the amount of friction created during a wire pull. SuperSlick Elite® features a slick, but never a slippery or greasy outer jacket for easy pulling without additional lubricant.

  • Customized Labeling - Since we have time to plan, we offer customized labeling on every item. Foreman name, location, special instructions and much more.

  • Pallet Report - Since Encore loads each pallet with labels clearly visible on each item, when we send pallet detail report, receiving product in on an active job site has never been easier. No need to break down pallets until product is needed, less chance of product walking off job site.

Copper-Aluminum Blanket Common Questions?

  • Are Copper Blankets More Expensive - Most of the time it is minimal, even though Encore locks in the copper price with the copper mines there are still other material and transportation cost that are at risk to increase.

  • What if Bill of Material Changes - Even though a copper-aluminum blanket is based on a specific bill of material we have flexibility as long as items that changed are like products. Many customers take advantage of color feeders and Encore labor savings products when they have more time to plan.

  • What is Minimum Pounds for Blanket - We have some flexibility, just let us know once you have a few sizable jobs awarded and we will do our best to make it work. We do require each release to be at least 5,000 pounds and can include copper, aluminum and MC.

  • Can we Ship to Multiple Locations - Yes you can combine multiple projects under one blanket and we will ship freight allowed on all releases 5,000 pounds or greater anywhere within the continental United States.

How do I Sign a Copper-Aluminum Blanket with Encore Wire?

  • Just click on "Email Us" below to set up an office visit to review all the details.

  • Once you have been awarded job(s) over 40,000 pounds share the bill of material(s) with Encore Agent to help identify the best time to lock in pricing for optimal profitability.

MUST SEE VIDEO: CNBC MAD MONEY - February 15, 2017

Cramer: Charts Signal Copper is About to Make a Powerful Move! (Predicted Copper Increase)

ASARCO STRIKE ENTERS WEEK 3 - October 29, 2019

NBC News 4 Tucson

Asarco Strike Week 3.jpg
 Copper's Heating Up, Red Hot Rally - September 5, 2019

CNBC'S Seema Mody and Futures Now Traders, Jim Iuorio and Scott Nations.

Red Hot Copper Rally.jpg
COPPER HITS 10 MONTH HIGH  - April 17, 2019

CNBC's Seema Moody, copper surging on Chinese economic data.

Copper Hits 10-Month High.jpg
FAVORITE INDICATORS SOLID GLOBAL GROWTH - October 27, 2017

CNBC's Jeffrey Gundlach - Copper ratio higher indicate we are in a growth-type environment.

WILL 2019 BE THE YEAR OF KING COPPER

Forbes - February 19, 2019

Because of its wide availability and exceptional conductivity, copper is found in everything from consumer products to automobiles to semiconductors. Last year global demand for the red metal stood at 23.6 million tons, and by 2027, it’s projected to reach just under 30 million tons, representing an average annual growth rate of about 2.6 percent.

This phenomenal growth is attributable not just to the rise of middle class consumers. It’s also thanks to our steady rotation into clean, renewable energy such as wind and solar—which is good news for copper demand going forward.

As I’ve shared with you before, renewables require many more times the amount of copper as traditional energy sources. A typical wind farm—those that blanket whole areas of West Texas, California and some other states—can contain as much as 15 million tons of the metal.

2018 Was a Record-Breaking Year for Renewables

Whether you’re a believer in renewable energy or not, the tipping point may have already occurred. Among the fastest growing jobs in the U.S. right now are wind turbine service technician and solar panel installer, for whatever that’s worth. And according to a report by Bloomberg New Energy Finance (BNEF), corporate purchasing of renewable energy more than doubled from 2017 to 2018. Globally, companies bought 13.4 gigawatts (GW) last year, compared to the previous record of 6.1 gigawatts in 2017. Over 63 percent of the purchasing activity occurred right here in the U.S. Facebook alone was responsible for consuming 2.6 GW of renewables, three times as much as the next biggest corporate energy buyer, AT&T.

 

The trend toward renewables is expected to accelerate at a white-knuckle pace for years to come. Take a look at the chart below, courtesy of McKinsey’s “Global Energy Perspective 2019.” Analysts believe that, by 2035, renewable energy will account for more than half of all power generation as its price falls below that of coal and gas-generated energy. Fifteen years after that, nearly three quarters of total energy consumed around the world will be derived from renewable means, chiefly wind and solar.

 

 

 

 

 

 

 

 

If this is compelling at all to you, now might be an excellent time to start participating. One of the best ways, I believe, is with exposure to high-quality, well-managed copper miners as well as funds that have a large position in copper mining.

China Will Lead the Transition from Internal Combustion Engines to Electric Cars

And we haven’t even mentioned electric vehicles (EVs), which are notorious copper gobblers. As I’ve shared with you before, EVs consume between three and four times the amount of copper as traditional internal combustion engines.

China is leading the world in EV adoption and will likely continue to do so for some time. In the fourth quarter of last year, China was responsible for 60 percent of global EV sales, according to Bloomberg, which adds that the country holds half of all vehicle-charging infrastructure. By the end of last year, electric cars made up about 7 percent of total new vehicle sales in China, with a compound growth rate of 118 percent since 2011. In about a decade, the Asian country will account for nearly 40 percent of the global EV market, followed by Europe (26 percent) and the U.S. (20 percent), according to BNEF.

Not only does China have national subsidies in place, but its carmakers are also incentivized to manufacture EVs thanks to the country’s “New Energy Vehicle” credit system. The system acts as an EV quota, requiring carmakers to generate credits through the sale of electric cars. According to BNEF, this is the “single most important piece of EV policy globally and is shaping automakers’ electrification plans.”

Adding to this acceleration is the fact that China has elevated the adoption of new “Phase 6” emissions standards under its anti-pollution “Blue Sky Defense” action plan. Just as we’re seeing in parts of Europe right now, China will soon begin banning the production of the most polluting diesel engines.

Many cities in China see the writing on the wall and have already enacted restrictions on gasoline-powered vehicle sales. In 2018, Shenzhen and Shanghai collectively led the world with more than 165,000 EV sales. That’s more than Norway and Germany combined.

With demand for EVs so high, it’s little wonder that China’s copper imports climbed to 479,000 tonnes in January, the second-highest on record.

Morgan Stanley Bullish on Copper, Upgrades Freeport-McMoRan

All of this leads me to believe that 2019 could be not only copper’s year but also copper miners’ year. The price of the red metal is up about 6 percent so far in 2019, trading at close to $2.80 a pound. That’s about 67 percent short of the metal’s all-time high of $4.62, set in February 2011.

Last week Morgan Stanley joined Citi and Goldman Sachs in making a bullish call on the metal. The investment bank projected a 14 percent upside for copper in 2019, based on a widening supply deficit and the likelihood of a resolution to the U.S.-China trade spat.

As for copper miners, Morgan Stanley upgraded Freeport-McMoRan, while Goldman Sachs recently upgraded Rio Tinto. Piyush Sood, lead analyst at Morgan Stanley, said in a note that Freeport’s “earnings sensitivity to copper is still the highest among its peers, and combined with its high trading liquidity, we believe it will emerge as the go-to large-cap stock for exposure to a copper price rally.” Shares of the Phoenix-based company’s stock jumped nearly 7 percent on the news last Wednesday.

Singapore-based DBS Bank also sees a copper shortage over the mid-term. Analysts expect supply to be in a deficit each year between now and at least 2022, when it could be at its widest since 2004.

 

 

 

 

“Copper is king for this electrification trend taking over the global economy,” Matt Gilli, CEO of Nevada Copper, told Reuters. “We see demand increasing steadily in the years ahead and, so far, supply is not keeping up.”

To meet surging demand, four U.S. copper projects are set to open by next year, the first to do so in decades, according to Reuters. And Ivanhoe Mines, founded by my friend Robert Friedland, is in the process of developing the Kamoa-Kakula copper deposit in the Democratic Republic of Congo, which Robert describes as the second-largest copper mine in the world.

“You’re going to need a telescope to see copper prices in 2021,” Robert told us when he visited our office last year.

All opinions expressed and data provided are subject to change without notice. Some of these opinions may not be appropriate to every investor. By clicking the link(s) above, you will be directed to a third-party website(s). U.S. Global Investors does not endorse all information supplied by this/these website(s) and is not responsible for its/their content.

Holdings may change daily. Holdings are reported as of the most recent quarter-end. The following securities mentioned in the article were held by one or more accounts managed by U.S. Global Investors as of (12/31/2018): Ivanhoe Mines Ltd., Citigroup Inc.

U.S. Global Investors, Inc. is an investment adviser registered with the Securities and Exchange Commission ("SEC"). This does not mean that we are sponsored, recommended, or approved by the SEC, or that our abilities or qualifications in any respect have been passed upon by the SEC or any officer of the SEC.

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