Copper stays on its upward trajectory

COPPER was once again the best-performing base metal this week with London Metal Exchange cash copper rising 1.1% to $9231.50 per tonne at midweek.
Copper stays on its upward trajectory Copper stays on its upward trajectory Copper stays on its upward trajectory Copper stays on its upward trajectory Copper stays on its upward trajectory

Colin Hamilton

Staff Reporter

Copper is at a 9½-year high, not trading in this range since August 2011. At midweek, all the other main base metals fell, though thinly traded cobalt rose to $51,965/t, the highest since late 2018.
 
BMO Capital Markets analyst Colin Hamilton said the demand environment for metals in 2021 was increasingly robust.
 
"Year-on-year demand comparisons will look extremely strong through the coming months, and raw material markets will likely remain tight," he said.
 
"However, for metals we still see the most important inflation metric in the near-term as that in China, with the government looking to more aggressively rein in credit to prevent asset bubbles in property and equity markets."
 
Gold remained at just above $1800 an ounce, while Bitcoin stabilised at just under $48,000 after Monday's slip.
 
The reason for the drop was a tweet by Elon Musk, saying cryptocurrency prices "do seem high lol".
 
"There is little doubt that it is less than ideal for a ‘safe haven' asset to follow one man's words to the letter," Swissquote senior analyst Ipek Ozkardeskaya said.
 

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