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Copper prices were on record on Friday as the reopening of major economies and demand for minerals needed to transition green energy rose in the last game of the broad meeting in commodity markets.
Copper, used from electric vehicles to washing machines, rose to 1.4 percent to $ 10,361 per tonne, surpassing the peak that hit the top of previous commodities in 2011.
The price has doubled since the pandemic lows of March last year due to poor demand from China, the largest consumer of the metal, and also wants investors and their portfolios to protect their growth potential against the potential for growth. inflation.
In order to meet the government’s stimulus package and the goals of the Paris agreement on climate change towards electrification, analysts and industry executives predict that demand for the metal will be further fueled. think he can get $ 15,000 a tonne By 2025.
“Our customers’ capacity utilization rates are the highest in a decade and that’s before they start making money in Europe and the US, ”said Kostas Bintas, head of Trafigura’s copper trade, one of the world’s largest independent commodity traders. “That will be significant.”
For the first time in decades the US and Europe were becoming important factors in copper consumption, he added. “Before, it’s only been a story in China. That’s changing rapidly.”
Concerns about long-term copper supply by large miners have also raised prices. There are only a few major projects in development, and most of the copper produced in the world has already been mined.
“The current pipeline for projects that will begin production in the coming years accounts for only 2.3% of the projected ore supply,” said Daniel Haynes, an analyst at the ANZ banking group. “It has dropped compared to previous cycles, reaching 12 percent between 2010-13.”
The upward gear other raw materials show no signs of declining. The steel component first traded iron ore for $ 212.75 a tonne when China returned to work after a May Day holiday in early May.
In Tangshan and Handan, two major cities in China’s steel industry, although production has declined, analysts expect production to remain strong in the coming quarters.
“Recent production cuts in Tangshan have boosted demand for higher quality ore and mills have encouraged the construction of iron ore inventories because their margins are rising due to reduced steel supply,” said Erik Hedborg, chief analyst at CRU Group.
“Iron ore producers have very high margins, as two-thirds of the sea supply only needs $ 50 a tonne to equalize.”
On the other hand, on Thursday the can rose to more than $ 30,000 for the first time in a decade before it eased. Tin is used for welding, a substance that binds circuit boards and cables together, and takes advantage of the strong demand from the electronics industry as the number of workers left at home is growing.
U.S. timber prices were running at a record high of $ 1,600 per 1,000 feet per board, up from $ 330 last year.
Agricultural products also continued to grow as a result of a particularly dry season in Brazil, due to concerns about the U.S. drought and demand from China. Large increases in food prices have begun to affect global consumers. Corn has been more than eight years old at $ 7.68 this week, with coffee up nearly 10% since the beginning of the month, at $ 1.54 a pound for four years.
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