Copper price rallies toward nine-year high on increased demand
Copper prices rose on Monday on increased demand and as the US dollar fell.
Copper for delivery in May was up 1.98% in afternoon trade, with futures at $4.2505 per pound ($9,3511 a tonne) on the Comex market in New York, nearing February’s peak of $9,617, the highest since 2011.
“That February high will be tested sooner or later,” Saxo Bank analyst Ole Hansen told Reuters.
Goldman Sachs sees prices average $11,000 per tonne over the next 12 months, according to the Business Insider. By 2025, the metal could be priced at $15,000 a tonne, a rise of 66%, Goldman said in a report titled “Copper is the new oil”.
Citi recommended clients take on bullish copper exposure over the next few weeks.
Economic recovery, ebullient markets, tight supply and a strong demand outlook should support copper, analysts at ING told Reuters.
“Upside risks (may) dominate for copper during 2Q21, suggesting the red metal could be on a parabolic run, testing previous highs,”, ING said in a note.
“This strength may dampen as the current restocking cycle approaches an end and slowing credit growth in China weighs on investment demand, which may become more evident in the second half of this year”.
