Listen to the latest market mood for the copper.
Copper is gaining increasing attention and expectations are rising that the metal is medium-term set for growth. Government-supported investment into environmental areas and digitalization will fuel copper demand. Electric vehicles, 5G networks, and renewable power generation all require large amounts of copper.
Morgan Stanley lists copper as their most favoured industrial commodity. The Bank of America expects prices to rise by 5.4% in 2020 to $5621 a ton. They kept their projection for 2021 unchanged at $6250 per ton. So, although copper demand could fall in the near term on COVID-19 fears, it is generally expected to grow by next year. As analysts look to the second half of 2020 copper could do very well.
Therefore, expect copper buyers for the long term into the new year.
We expect this outlook to play out over the rest of this year.
Main Trade Risks
One risk is if there is a second wave outbreak of COVID-19 that shuts down economies once again.