Copper resumed its rally on Wednesday, as analysts and executives expect increasing demand and likely low supply to drive prices even higher.
Copper for delivery in May was up 2.51% in afternoon trade, with futures at $4.1310 per pound ($9,088 a tonne) on the Comex market in New York. The industrial bellwether metal is crucial in the global push for a greener economy, and right now, the market is facing a supply crunch.
US’s post-pandemic recovery and the Biden Administration’s infrastructure plan are helping to build momentum for base metals.
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”.
“Discussions of peak oil demand overlook the fact that without a surge in the use of copper and other key metals, the substitution of renewables for oil will not happen,’ the bank said.
For the rest of this article: https://www.mining.com/copper-price-scales-9000-after-goldman-calls-it-the-new-oil/