Monday, April 19, 2021

"METALS-Bullish investors push copper towards 10-year highs"

 From Reuters, April 19:

Copper prices rose on Monday as global stock markets hit record highs and the dollar fell, with many analysts and traders expecting the metal to rally to new 10-year highs.

Benchmark copper on the London Metal Exchange (LME) was up 1.8% at $9,379.50 a tonne at 1605 GMT, after touching $9,436, its highest since Feb. 25.

“That February high” - $9,617 - “will be tested sooner or later,” said Saxo Bank analyst Ole Hansen, taking prices to their highest since 2011. Prices would then target $10,000 a tonne, he said.

MARKETS: Investors upbeat about the prospects for a global economic recovery from COVID-19 pushed up equities markets.

DOLLAR/YIELDS: Boosting copper have been a fall in U.S. bond yields that lifted equities markets and a weakening dollar, which makes metals cheaper for non-U.S. buyers.

The dollar weakened further on Monday while U.S. 10-year yields inched higher.

PARABOLIC: Economic recovery, ebullient markets, tight supply and a strong demand outlook should support copper, said analysts at ING....


April 16
"Copper heads for biggest weekly gain since February"
The move is only beginning....

And via the FT's Natural resources editor: 

"Chinese Firms Position for an Energy Transition Copper Supercycle" 

Wood Mackenzie: "Build Or Buy: Are The Copper Majors Rising To The Growth Challenge?""