Copper once again cleared the psychologically important $3 a pound level on Thursday on the back of falling inventories, booming Chinese demand and pandemic hit supply from South America, the US and Africa.
Copper for delivery in December trading on the Comex in New York exchanged hands for $3.0120 a pound ($6,605 a tonne) in morning trade, bringing gains for 2020 to more than 8% and a mouthwatering 52% since the covid-19 lows struck in March.
A new report from Roskill suggests the rally in copper – which has surprised many with its speed – has further to go.
Jonathan Barnes, associate consultant for copper at the London-based metal and minerals research firm, says while the effects of covid-19 could decrease world consumption of the metal by 3%–4% this year, the drop in mine output and scrap flows has been greater.
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