Copper price has set a new high new record in the current market. This is after exceeding its previous records on Feb 2011. This great move has been brought about by recoveries in other major industrial economies.
The surging manufacturing output in places like Germany, U.S. and Japan has also played a key role in the copper price surge. Investors are betting that the shift of copper’s essential role to green energy will generate increased demand and higher prices on this metal.
The increasing demand for electric vehicles and required infrastructure has led to many investors piling into the copper market. Electric vehicles contain about four times as much copper as in conventional cars.
There is a high demand for huge amounts of copper wiring which will be needed in roadside chargers to keep them running. Governments around the world have outlined elaborate investment plans which involve construction and green energy.
Copper price forecast
Copper’s uptrend cycle
Copper is one of the commodities that has experienced a tremendous rise in its prices in the recent past. Copper futures at COMEX hit a ten-year high at $10,008 per ton. China and U.S are among the countries that have recorded a strong economic data.
The red metal is largely used in construction, electrical and industrial projects. The corona virus pandemic largely affected the copper markets but since the beginning of 2021, the prices have been rapidly increasing.
The growth in copper price has been largely influenced by the current transmission to green economies. Copper is heading towards the 100% Fibonacci extension of the price swing since December 2020.
Trafigura Group, the world’s largest copper trader, say that prices could hit more than $15,000 a ton in the coming years. The shift to green energy will play a key role in the surge. The American Bank says that $20,000 is even possible if drastic measures are put in place on the supply side.
It is without doubt that the red metal’s prices will continuously increase with the transmission to green energy. This shift will play a major role in the economic growth of most countries.