The metal market surprises by its contrasts. The segment of precious metals is almost stagnant, whereas industrial metals are hitting one record high after another. For example, now, copper is showing the sharpest growth among all other industrial metals.
Thus, at the London Metal Exchange, copper reached a record high of $10,425 (approximately 772,000 rubles). Demand for copper has long been one of the most accurate indicators of the global economic condition. Most analysts consider the current rise as a good signal of further economic recovery.
This metal is widely used in the production sector. It means that demand for copper reflects the global production activity. The higher the demand climbs, the healthier economy is. According to economists at Bank of America, the gradual lifting of lockdown measures in various countries will contribute to the reopening of industrial enterprises, which need copper. This, in turn, will boost the metal’s price.
Growing disagreement between the US and China, which is the world’s largest consumer of copper, is one more driver of higher copper prices. Not so long ago, Bank of America foresaw that by the end of 2021, one ton of copper would cost $6,250. In fact, the metal’s price has already exceeded the forecast.
