Solaris Resources Inc T.SLS

Copper at 7 Year High

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LME copper reaches seven-year high as post-pandemic optimism builds

Nov. 27, 2020 9:51 AM ETCopper Futures (HG1:COM)By: Carl Surran, SA News Editor3 Comments

• Copper prices (HG1:COM) on the London Metal Exchange top $7,500/ton, rising for a fourth straight day to hit a seven-year high and adding to this week's surge across base metals as coronavirus vaccines win approval.
• The metal, an indicator for health of the economy, has climbed ~70% off its March lows, underpinned by a revival in China's industrial activity and maintained by hopes for a post-pandemic demand boom.
• The metal also is gaining traction as a bet on enhanced climate policies that will expand copper-rich power networks.
• Also, fresh data from the Shanghai Futures Exchange shows copper stockpiles in its warehouses falling to the lowest since late 2014.

 

• The copper market is "heading into a multi-year period of deficits," Jefferies said in recently upgrading Glencore and Antofagast to Buy