According to Fitch Ratings, the commodity price rally is pushing companies to rebalance their capital allocation towards decarbonization investments and growth.
Copper prices rose on Tuesday as the dollar weakened and risk sentiment improved on positive developments from a meeting between U.S. President Joe Biden and Chinese leader Xi Jinping.
New report argues rising mine supply, steep fall in demand from China’s property sector and shifting global consumption patterns away from goods to services will send copper prices skidding.
China attaches “high importance” to the energy transition, and has recently set out major steps including a target to reduce coal consumption from 2026.