Copper To Continue Outperformance in 2021, Says Analysts

SEATTLE (Scrap Monster): The gradual economic recovery post-Covid-19 has helped copper to record annual gains, with the metal likely to outperform other industrial metals during the year.

The lockdown restrictions in countries all over the world following the rapid spread of the virus led to shutdown of factories, which in turn led to reduced demand for industrial metals. The gradual recovery in economies led to healthy rebound in demand for copper along with other commodities. The announcements of promising vaccines have further lifted industry sentiments.

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The performance of copper witnessed notable improvement, mainly driven by dip in dollar prices, optimism about further monetary stimulus packages and dip in copper supply. As per analysts, gradual economic recovery will boost demand for copper and other industrial metals in 2021.

Goldman Sachs maintains extremely bullish view on the red metal. According to them, the current bull run in the metal is most likely to extend until 2022. The copper prices are poised to hit $10,000 per tonne. Several other metal strategists also noted that the price strength by the metal is not an aberration, but instead the first leg of a structural bull market in copper.