Copper prices reach historic high amid supply deficits
Date
5/21/2024 5:08:33 AM
(MENAFN) Copper prices have surged to unprecedented levels, extending a months-long rally driven by investor anticipation of further price hikes due to an expected supply shortfall. Bloomberg's report highlights that copper futures prices in London Metal Exchange trading soared over 4 percent yesterday, breaching the USD11,000 per ton mark for the first time, although they later moderated some of these gains.
Banks, mining firms, and investment funds are among those placing bullish bets on copper, anticipating a sustained upward trajectory in prices over the coming months. This optimism has spurred a significant influx of investments into the copper market in recent weeks, propelling prices upward since early April.
Last week, prices experienced a notable uptick amidst supply shortages on the New York Futures Exchange. Investors and traders are sounding the alarm about a looming global copper supply crunch, driven by escalating demand. Notably, copper prices have surged by over a quarter since the beginning of 2024, underscoring the magnitude of the current market dynamics.
The persistent rise in copper prices underscores the crucial role the metal plays in various industries, particularly in sectors such as construction, electronics, and renewable energy. As the world transitions towards greener technologies, the demand for copper, a vital component in electrical wiring and renewable energy infrastructure, is expected to remain robust. This surge in copper prices serves as a stark reminder of the intricate interplay between market forces, supply chain dynamics, and global economic trends, highlighting the challenges and opportunities inherent in commodity markets.
MENAFN21052024000045015682ID1108238423
Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.