Prices for the metal soared again Thursday to more than $5,700 a tonne
Copper, until recently one of the worst performing commodities in the past two year, is having a great month, with prices up about 20% to more than $5,700 a tonne Thursday.
The rally, which began on the heels of Donald Trump winning in the US presidential election, has been partly based on speculation regarding the impact of the President-elect’s $500 billion infrastructure plans on demand for the metal.
It has also been fuelled by a pick-up in Chinese imports, responsible for some 49% of global copper demand, which is seen a good omen for the industry’s health.
Even Goldman Sachs — usually the most pessimistic when it comes to predicting what’s in stake for copper in the short term — has changed its tone to a more positive one, FT.com reports (subs. required).
According to the publication, the investment bank believes the increased demand from China, the world’s largest copper consumer, has left the market tighter than previously expected. Now Goldman believes the market will be broadly balanced this year.
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