Copper maintained its continuous climb as demand for the commodity strengthened on the back of a powerful recovery in the global economy while increasing stimulus in many countries is pushing sentiment higher,market watchers observed.
The demand spike in the world’s leading consuming countries, led by China, industries also ramped up production, pushing the cost of materials ever higher while traders raise concerns about a lack of supply caused by the pandemic.
Prices in the London Metals Exchange (LME) inched closer to the record peak of $10,747.50 a tonne on Tuesday morning as three-month copper gained 0.9 per cent at $10,470 a tonne.
On the Shanghai Futures Exchange (ShFE), the most-traded June copper contract clawed from early losses of 2.5 per cent to stand at 76,000 yuan ($11,819.23)
With the global recovery expected to continue for some time, analysts maintained that the price could continue to rise in the coming months.
Daniel Briesemann, commodities expert at Commerzbank AG ,opined that decarbonization trends in many countries which include switching to electric vehicles and expanding wind and solar power are likely to generate additional demand for metals, especially copper.
Analysts further averred that the gradual recovery of the global economy, increased investments on renewable energy and electronics as well as government efforts on increasing stimulus measures are driving sentiment higher.