C - Copper's Price Nears $10000 Per Ton
2024-04-22 09:35:44 ET
Ongoing supply concerns have pushed the price of %Copper to a two-year high of nearly $10,000 U.S. per ton.
Commodities traders are betting that copper miners will struggle to meet a surge in demand for copper, which is a leading industrial metal.
Base metals have seen big gains in recent weeks, and copper is currently trading at $9,988 U.S. a ton, its highest level since spring 2022.
A rise in manufacturing activity in America and China have led to the advance in metal prices, outweighing uncertainty caused by geopolitical tensions and the monetary policy outlook.
The current rally in copper is also being driven by disruptions at major mine sites around the world that have left smelters scrambling to find alternative supplies.
In a note to clients, commodities analysts at %Citigroup (NYSE: ) said that the forecast for copper looks positive over the coming three months on the prospect of a tighter market and short covering.
The rally in copper comes despite U.S. Federal Reserve Chair Jerome Powell saying last week that it’s going to take the central bank “longer than expected” to get inflation under control and begin cutting interest rates.
On April 22, copper’s price climbed as high as $9,921.50 U.S. per ton on the London metals exchange before paring some of those gains.