Mining industry. Heavy excavator loading granite rock or iron ore into the huge dump truck at opencast quarry. Sunset

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.

Leave a Reply

Your email address will not be published. Required fields are marked *

Sign Up for Our Newsletters

Get exclusive content in your inbox.

You May Also Like

Silver price: Key levels to watch with Powell’s Testimony in focus

Silver price is trading sideways for the second consecutive session ahead of Powell’s testimony before the US Congress. The Fed Chair has maintained that price pressures are transitory.

Silver price outlook ahead of the US jobs data

Silver price is trading lower ahead of the US ADP employment report and the initial jobless claims data. It may trade on a tight range in the near term.

Silver Price: Is a Breakout Imminent?

Silver price remains range-bound as the US bond yields rebound from Friday’s intraday low. In the new week, the focus will be on manufacturing PMIs from various countries.

Gold price forecast ahead of the FOMC meeting minutes

Gold price ended Friday’s session at 1,843.16 after the stagnation of April’s retail sales pushed the US dollar lower. In the coming week, the focus is on FOMC meeting minutes.