Copper soared to its highest level since 2011 and is showing no signs of easing. Apparently, the massive stimulus measures, strong vaccine rollouts and transformation to green energy are fueling the global recovery from the coronavirus pandemic.
Aluminum and iron also jumped to new all-time highs as commodities advanced to the highs of the last supercycle, when prices rose sharply in the early 2000s. Obviously, metals, especially copper, are benefiting the most in the rally brought by the global recovery.
Vivek Dhar, an analyst at the Commonwealth Bank of Australia, said strong macro statistics drive demand for copper up.
Copper gained 1.4% and hit $ 9,885 on the London Metal Exchange, the highest price it had since August 2011. It dropped slightly to $ 9,843 at 12:59 pm in Shanghai.
Meanwhile, in the Shanghai Futures Exchange, price rose 2.2% and reached 72,510 yuan, also its highest level in 10 years. Other metals increased in price as well, with aluminum setting its 3rd high on the London Metal Exchange.
In terms of supply, protests in Chile threatened production disruptions in the country, which is slightly alarming because Chile accounts for about a quarter of the world's copper supply.
Demand is also expected to dip in China, according to Shanghai Metals Market.
Nevertheless, the upswing in copper indicates that it is the leader of stable growth among other metals.