Copper Prices Soar to 10-Year High Amid Low Supply and Industrial Boom

Copper prices soared to a 10-year high this week, as an industrial rebound from the Covid-19 pandemic, coupled with the Biden administration’s latest infrastructure spending announcements, fuel expectations of higher demand for the metal.

Following some instability in March amid renewed concerns over lockdowns across Europe and a strengthening US dollar, copper has once again regained its bullish trajectory. The metal has risen 11% since the beginning of April, to above $10,100 per tonne— the highest since the 2011 commodity boom. Indeed, the latest copper rally comes as reflation signals flash red, further threatening to send the metal skyrocketing even higher.

The latest plans of an infrastructure overhaul in the US has fuelled speculation in support of copper prices. The Biden administration’s “Build Back Better” plan promises to allocate hundreds of billions of dollars towards renewable energy technology — in which copper plays a significant role given its conductivity characteristics.

On top of that, the pandemic-induced shift to remote work, as well as a broader movement towards a digital economy, have caused demand for electronics to soar, further supporting the copper rally. “Technology, semiconductors, data centers, and cellular towers all require significant copper usage,” Bank Wealth Management senior investment strategist Rob Haworth told MarketWatch.

At the same time, investments in copper supply have been drying up over the past several years, leaving manufacturers competing for scarce copper resources and thus driving prices even higher.


Information for this briefing was found via MarketWatch. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

Video Articles

Avino Q2 Earnings: Steady As She Goes

MEG Energy: Cenovus Comes In With $7.9 BILLION Offer

Orla Mining Q2 Earnings: Musselwhite Changes Everything

Recommended

Northern Superior Expands Philibert With 350 Metre Step Out Testing 1.10 g/t Gold Over 25.5 Metres

Goliath Resources Hits 18.58 g/t Gold Over 5.00 Metres At Surebet

Related News

Canadian Copper Begins Trading On The CSE

Canadian Copper (CSE: CCI) became the latest issue to hit the Canadian Securities Exchange, experiencing...

Tuesday, July 26, 2022, 03:50:00 PM

Max Resource Discovers New Zone At Cesar Copper-Silver Project

Max Resource Corp (TSXV: MXR) this morning announced that it has discovered yet another copper...

Thursday, April 8, 2021, 07:08:30 AM

Pegasus Resources Reports Review Of Several Green Energy Projects

Pegasus Resources (TSXV: PEGA) this morning revealed that it is in the process of reviewing...

Wednesday, February 17, 2021, 09:07:22 AM

US Treasury Set to Borrow Record $2.99 Trillion in Second Quarter

As the US economy is in the middle of fighting its invisible war against the...

Tuesday, May 5, 2020, 01:22:00 PM

Libero Copper Sees Field Crews Mobilize For 2021 Field Program

Libero Copper & Gold Corporation (TSXV: LBC) this morning provided an update on the status...

Monday, May 31, 2021, 09:11:00 AM