Copper has been trading above $4.0 per pound since the third week of February, a level not seen since August 2011 on the back of supply disruptions in some South American mines along with robust demand from China and prospects of a global economic rebound. Copper production in top producer Chile has been declining since mid-2020 due to Covid-19 disruptions and as the country faces a slew of collective bargaining at a time when prices embolden unions and companies battle to keep costs in check. Also, a new coronavirus wave in Chile prompted the closure of its borders, raising further concerns over mine supply risks. Meantime, the arrival of the peak consumption season and a strong US economic rebound along with President Biden’s multitrillion-dollar infrastructure plan continue to provide optimism to the copper bulls.
Historically, Copper reached an all time high of 4.63 in February of 2011. Copper - data, forecasts, historical chart - was last updated on April of 2021.
Copper is expected to trade at 3.96 USd/LB by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate it to trade at 3.64 in 12 months time.