Copper Witnessed its Best Quarter Since 2010

SEATTLE (Scrap Monster): The copper price performance is poised to record its best quarter since 2010. The sharp rebound in demand for the red metal in China coupled with tight supply concerns from South American mines extended support to price performance. Incidentally, the prices of the metal has recorded 20% surge in this quarter alone. The prices had hit $6,000 per metric ton levels during the previous week on fears of further worsening of the pandemic crisis.

According to BMO Capital Markets, the Chinese economic recovery has surprised market expectations. The easing of lockdown in China and other large economies has led to sudden surge in demand prospects.

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Although the anticipated new wave of virus infections tend to add risk to demand outlook for the metal, the global economic stimulus measures and concerns over mine shutdowns appears to lend huge support to the market. For instance, Morgan Stanley predicts losses of nearly 560,000 metric tons of mined copper in 2020. It foresees high chances of reduced mine output from Chile. The demand is expected to outstrip production amid supply disruptions, it added.

It must be noted that copper prices have rallied steadily over the past three months.