Copper Hits Seven-Year High as Demand Hopes Build
Comment of the Day

November 27 2020

Commentary by Eoin Treacy

Copper Hits Seven-Year High as Demand Hopes Build

This article by Bloomberg News for Bloomberg may be of interest to subscribers. Here is a section:

The recent surge for metals has been powered by expectations that a coronavirus vaccine deployment next year will ease global economic pain, and mean China isn’t the only region driving demand growth. Dollar weakness has also helped.

The metal is also gaining traction as a bet on hawkish climate policies that will expand copper-rich power networks. China’s rapid economic rebound has driven its imports to record levels this year, helping to offset lower demand in the rest of the world. The country’s latest factory gauge, due
Monday, is expected to show activity in the top copper consumer continuing a steady expansion.

On Friday, data from the Shanghai Futures Exchange showed copper stockpiles in its warehouses falling to the lowest since late 2014.

Eoin Treacy's view

Japan started out as a low-end manufacturer and progressed into high end manufacturing by developing its automotive sector and later a semiconductor sector. South Korea followed the same path to development and China is now attempting to do the same thing at scale; first with the automotive sector and now with semiconductors.  

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