TotalEnergies is currently exploring the possibility of entering the copper trade to benefit from the increasing demand for metals in the energy transition. The French energy company aims to expand its extensive oil trading activities into the metals sector for the first time, as announced by Rahim Azouni, Senior Vice President for Crude Oil, Fuels, and Derivatives Trading, at a closed conference in London.

We are examining the case to strengthen our position in the changing energy market," explained Azouni. The decision is closely linked to the global energy transition, which brings an increased demand for copper, especially for power cables, buildings, and electric vehicles. TotalEnergies plans to create a "Digital Delivery Unit" focused on technological innovations, artificial intelligence (AI), and data-driven solutions in metal trading.

The move follows the trend of more and more oil companies expanding their activities into the metal market. Vitol, the world's largest independent oil trader, recently returned to metal trading after leaving it in 2014. Similarly, Mercuria is expanding its metals trading division and increasingly focusing on aluminum as part of its energy transition strategy. Hedge fund manager Pierre Andurand is also increasingly shifting his focus to copper and other metals, predicting that copper prices could rise significantly in the coming years.

The global demand for copper is expected to increase significantly in the next ten years, driven by the electrification of the economy and the expansion of renewable energies, according to expert analysis. Despite these positive prospects, the oil market is currently facing challenges as demand in China has declined due to geopolitical tensions and the war in the Middle East, keeping prices low.

Tom Price, resources analyst at Panmure Liberum, explained: "The low volatility in the oil market and long-term changes in energy systems are driving the transition to metals." However, he emphasized that the shift from oil to metal trading could pose a significant challenge due to different market structures.

TotalEnergies views its experiences in China and Indonesia, the company's largest Asian markets, as a solid foundation for expansion in India, where the demand for metals continues to rise. The group also plans a four-year investment of 20 million euros to expand its existing production facility in Punjab, India, and is considering further partnerships to form an equal 50/50 joint venture with the EP Corporate Group.

Patrick Pouyanné, CEO of TotalEnergies, emphasized the need to adapt to changing market conditions and to find innovative ways to remain competitive in a dynamic global environment. "Our strategic focus on metals allows us to diversify our revenue and respond to future market trends," said Pouyanné.