Copper closed out the week with a near 6% gain, after the critical metal broken out of a months-long sideways trend, causing investors to celebrate on social media.
The metal managed to close out the week at a price of $4.11 per pound, gaining $0.23 per pound over the course of the week with speculation calling for the price to continue its momentum.
The hike in prices is being attributed to China, where top copper smelters are said to have agreed to collectively cut production in an effort to deal with raw material shortfalls and uneconomic operations. Originally reported by Reuters on Wednesday, it is said that there are no specific rates or volumes set for the cuts, with each smelter to be responsible for curtailing their own operations based on internal assessments.
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Chief among the concerns of smelters is the reduced availability of copper concentrate on the global markets due to mine disruptions. The best example of disruption perhaps is First Quantum’s (TSX: FM) Cobre Panama mine, which accounted for 1% of global supply when operational. Local protests however have forced the mine to shutter, despite having provided as much as 5% of Panama’s GDP.
READ: First Quantum Moves To Force Arbitration With Panama Over Cobre Panama Mine
Goldman Sachs meanwhile late this past week issued a report saying that “copper’s time is now,” while ascribing a price target of $4.54 a pound by the year’s end. For 2025, Goldman is calling for prices that average out at $6.80 a pound, in what would be a substantial gain for the key metal.
Information for this story was found via the sources and companies mentioned. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
