ASX copper stocks and how to invest

Copper is a hot commodity in Australia. What you should consider before you invest?

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Looking for copper stocks on the ASX? Copper can be found in low concentrations in the earth’s crust. It has an abundance of uses — from our homes to industrial machinery.

As of 2021, Australia was the 7th largest exporter of copper, with and many of our copper miners are listed on the Australian Securities Exchange (ASX), including Sandfire (SFR) and OZ Minerals (OZL). This guide will cover how you can invest in copper stocks in Australia, including stocks and ETFs to consider.

ASX copper stocks

Copper stocks trade on international exchanges, including the New York Stock Exchange, London and Toronto stock exchanges and Australia's stock exchanges. Here are some ASX-listed copper stocks:

Which ASX ETFs track copper?

To date there are no pure-play copper ETFs listed on the ASX, however, there are some copper ETFs listed in the United States. These ETFs include:

  • Global X Copper Miners ETF (COPX)
  • United States Copper Index Fund (CPER)
  • iPath Series B Bloomberg Copper Subindex Total Return ETN (JJC)

What is copper and how is it used?

Copper is a reddish-orange metal that is corrosion-resistant and an excellent conductor of heat and electricity. In its natural state, copper is soft, solid and can be moulded into different shapes and thicknesses.

It is naturally found in ore deposits that are mined or leached. Mining crushes and grinds the ore into powder, where the unwanted materials and other impurities are removed. Leaching uses sulphuric acid to remove the copper from the other ore minerals.

Copper has a plethora of uses across five main markets:

  • Construction. Wiring, heating, refrigeration and plumbing all use copper materials.
  • Electrical and electronics. Utilities and electronics need copper wiring and parts.
  • Consumer products. Cookware and household appliances use their fair share of this raw material.
  • Transportation. Vehicles, including airplanes, cars and trucks, are manufactured with copper.
  • Industrial equipment. Machinery consumes millions of pounds of copper every year.

Copper stocks generally refer to companies that explore, develop, produce and sell copper all over the world.

Why invest in copper stocks?

Copper has an expansive range of industrial and consumer applications — from factories and transmission lines to homes and electronics. And the recent push for electric vehicles is likely to increase demand for this essential metal.

Electric vehicles have five times more copper than traditional cars. And this new driving technology will also require large amounts of copper to support its electric charging infrastructure. Copper’s strong ties to many sectors of the economy likely mean that the demand isn’t going anywhere.

Risks of investing in copper stocks

While copper is one of the most abundant metals on earth, only a small portion is economically viable to extract at today’s prices using current technologies. So mining companies are vulnerable to copper price fluctuations, which are easily impacted by geopolitics.

For example, global copper prices fell to their two-year all-time low in 2019. It was collateral damage amid the escalating trade war between the United States and China — a country that consumes over 50% of the world’s metal.

An additional risk is that there are other practical substitutes for copper. For example, manufacturers can use aluminum instead of copper in automobile radiators, the optical fiber in telecommunications equipment and plastics for pipes and plumbing fixtures. These substitutions can lower demand and cause copper and its stock prices to fall.

Compare trading platforms

One of the simplest ways to invest in copper is with a domestic brokerage account in Australia, which allows you to buy stocks on the ASX. But if you want to invest in international copper stocks, you'll need an international brokerage account.

Use the table below to compare domestic brokerage accounts.

Name Product Standard brokerage fee Inactivity fee Markets International
eToro (global stocks)
US$0
US$10 per month if there’s been no login for 12 months
Global shares, US shares, ETFs
Yes
Zero brokerage share trading on US, Hong Kong and European stocks with trades as low as $50.
Note: This broker offers CFDs which are volatile investment products and most clients lose money trading CFDs with this provider.
Join the world’s biggest social trading network when you trade stocks, commodities and currencies from the one account.
IG Share Trading
$8
$50 per quarter if you make fewer than three trades in that period
ASX shares, Global shares
Yes
$0 brokerage for US and global shares plus get an active trader discount of $5 commission on Australian shares.
Enjoy some of the lowest brokerage fees on the market when trading Australian shares, international shares, plus get access to 24-hour customer support.
Superhero share trading
$5
No
ASX shares, US shares
Yes
Australia’s lowest-cost broker for ASX shares and ETFs.
Pay zero brokerage on US stocks and all ETFs and just $5 (flat fee) to trade Australian shares from your mobile or desktop.
ThinkMarkets Share Trading
$8
No
ASX shares
No
Limited-time offer: Get 10 free ASX trades ($0 brokerage) when you open a share trading account with ThinkMarkets before 31 December 2021(T&Cs apply). $8 flat fee brokerage for CHESS Sponsored ASX stocks (HIN ownership), plus free live stock price data on an easy to use mobile app.
Bell Direct Share Trading
$15
No
ASX shares, mFunds, ETFs
No
Finder Exclusive: Get 5 free stock trades and unlimited ETF trades until 31 Dec 2021, when you join Bell Direct. T&Cs apply.
Bell Direct offers a one-second placement guarantee on market-to-limit ASX orders or your trade is free, plus enjoy extensive free research reports from top financial experts.
SelfWealth (Basic account)
$9.5
No
ASX shares, US shares
Yes
Trade ASX and US shares for a flat fee of $9.50, regardless of the trade size.
New customers receive free access to Community Insights with SelfWealth Premium for the first 90 days. Follow other investors and benchmark your portfolio performance.
Saxo Capital Markets (Classic account)
$5
No
ASX shares, Global shares, Forex, CFDs, Margin trading, Options trading, ETFs
Yes
Access 19,000+ stocks on 40+ exchanges worldwide
Low fees for Australian and global share trading, no inactivity fees, low currency conversion fee and optimised for mobile.
CMC Markets Invest
$11
No
ASX shares, Global shares, mFunds, ETFs
Yes
$0 brokerage on global shares including US, UK and Japan markets.
Trade up to 9,000 products, including shares, ETFs and managed funds, plus access up to 15 major global and Australian stock exchanges.
HSBC Online Share Trading
$19.95
No
ASX shares, mFunds, ETFs, Bonds
No
Limited time offer: Get up to $100 in brokerage rebates on your first 5 trades when you sign up to a HSBC Online Share Trading account (T&Cs apply). Make trades online with brokerage fees starting from just $19.95 with an HSBC Online Share Trading account. Plus gain access to complimentary expert research, trading ideas and tools.
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Compare up to 4 providers

Important: Share trading can be financially risky and the value of your investment can go down as well as up. Standard brokerage is the cost to purchase $1,000 or less of equities without any qualifications or special eligibility. Where both CHESS sponsored and custodian shares are offered, we display the cheapest option.

Bottom line

Copper is involved in a lot of economic sectors. While its consumer and industrial applications keep copper in demand, you’ll need to keep a pulse on global trade wars.

Consider a few different trading platforms that offer international brokerage accounts to add copper to your investment portfolio.

Frequently asked questions

Disclaimer: This information should not be interpreted as an endorsement of futures, stocks, ETFs, CFDs, options or any specific provider, service or offering. It should not be relied upon as investment advice or construed as providing recommendations of any kind. Futures, stocks, ETFs and options trading involves substantial risk of loss and therefore are not appropriate for all investors. Trading CFDs and forex on leverage comes with a higher risk of losing money rapidly. Past performance is not an indication of future results. Consider your own circumstances, and obtain your own advice, before making any trades.

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