Copper prices extend gains on solid demand and supply concerns

Vrasidas Neofytou

Vrasidas Neofytou
Head of Investment Research

See all articles

Copper prices have extended recent gains, supported by the robust industrial demand from its top consumer China, coupled with supply chain worries in Chile, the world’s largest producer of the red metal.

The prices of Copper, which is used as an index of economic health by investors, climbed at $3 per pound, rebounding almost 50% from their multi-year lows in March, recovering all losses caused by the coronavirus pandemic and trade war combined.

The massive rally in the prices of the base metal was supported from a continued cyclical recovery in major economies such as the US and China after the pandemic fallout, together with the weaker US dollar, which makes dollar-denominated metals cheaper for holders of foreign currency.

However, copper’s rally has recently lost some steam as physical demand subdued with the on-going spikes in COVID-19 cases around the world, the escalation of US-China tensions and worries over the economic recovery in China.

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


Different ways to Trade with us

When you become a client of Exclusive Capital, you will be part of an EXCLUSIVE network.

Subscribe to receive our daily Insights and info on our upcoming events