The global recovery in the US, EU, and China in 2025 sets the stage for a favorable climate for industrial metals. Nickel, copper, zinc, and aluminum are particularly attractive, according to Handelsbanken analyst Christian Kopfer.
Aluminum is widely used in the economy, from soda cans to airplanes, construction, and vehicles. Copper is essential in electronics.
“I believe in a better year for industrial metals next year. They are used in the global economy, and if we see a recovery, there are good prospects for these metals,” says Christian Kopfer.
Copper for the long-term
The choice of metals depends on the time horizon. Copper is more interesting in the long term, such as five years, according to Christian Kopfer.
“It is the metal that looks most interesting going forward because it is quite difficult to significantly increase copper production.”
In the short term, nickel and aluminum are particularly promising, Christian Kopfer argues.
“Yes, both have also performed quite weakly in 2024.”
Buy Boliden and Lundin Mining
For investors looking to invest in industrial metals, there are certificates that offer exposure. Alternatively, it is also possible to buy commodity companies on the stock exchange.
“When it comes to aluminum, you have the company Norsk Hydro, and when it comes to the other metals, you have Boliden and Lundin Mining.”
A general rule is to have around 20% of the portfolio in commodities, but it all depends on the level of risk one is willing to take and the individual financial situation, according to Christian Kopfer.
Gold to reduce risk
However, he does not completely rule out gold, despite this year’s rally.
“But it probably won’t be the strongest metal in 2025 given the strong year it has had. The increase has been around 20%, which is significantly stronger than the stock market index,” says Christian Kopfer, noting that gold is quoted in dollars, making the development in kronor even better.
“But a USA, a France, China, and Japan plagued by large budget deficits in combination with a more expansive monetary policy are good for gold. So in the long term, it’s always good to have gold,” he says.
However, it is time to reduce if you have had a lot of gold this year.
“And above all, see the metal as risk diversification,” he says.
A company on the stock exchange that provides good exposure to gold is Lundin Gold, which has risen by almost 115% this year.
Better metal than oil
Oil is another commodity that Christian Kopfer warns against.
“Oil depends on what the OPEC cartel will do with its supply, so I think it is quite risky. I believe more in industrial metals than oil.”