Copper and industrial commodities rally to fresh records on improving demand outlook

Vrasidas Neofytou
Head of Investment Research

See all articles

Industrial commodities have been enjoying an explosive year so far, with prices flirting new multi-year highs, supported by the optimism around the successful vaccine rollout, and the global economic recovery.

Institutional investors have increased their bullish bets on Copper and other base metals since the global demand has surged to pre-pandemic levels coupled with the largest supply deficits in a decade.

Copper, which is the king of the industrial metals, has rallied towards 4.50 dollars per pound, hitting its highest level since 2011 over strong demand from China and supply constraints in Chile.

Most recently, Goldman Sachs has called Copper as the “new oil”, since the red metal will play a key role in the decarbonisation of energy systems and especially in the development of the electric vehicle market.

Electric vehicles use about four times as much copper as traditional internal combustion vehicles, while renewable energy uses five times as much copper as traditional fossil fuel power generation.

Climbing to fresh record highs, industrial commodities such as Iron Ore, Aluminium, Platinum and Lithium have been the best indicators for the recovery in the global manufacturing and construction activity after the pandemic.

Finally, Palladium climbed to 3.000 dollars per ounce for the first time, getting support from the robust industrial demand from the automotive sector, the reflation bets, and the weaker US dollar.

Important Information: This communication is marketing material. The views and opinions contained herein are those of the author(s) on this page, and may not necessarily represent views expressed or reflected in other Exclusive Capital communications, strategies or funds. This material is intended to be for information purposes only and is not intended as promotional material in any respect. The material is not intended as an offer or solicitation for the purchase or sale of any financial instrument.

Read our detailed Marketing Communication Disclaimer

SHARE

CONNECT WITH OUR TEAM

Explore the ways in which we can help you achieve your investment goals.

OUR PARTNERS
bdo

EXTERNAL AUDITOR

ey

LEGAL ADVISOR

lgt

CUSTODIAN BANK

efg

APPROVED PARTNER

Raiffeisen

DEPOSITORY BANK

Prime Fund

GROUP MEMBER