Copper drifts towards 9-year high on demand outlook, defies firm dollar

Reuters February 17 | Updated on February 17, 2021 Published on February 17, 2021

Benchmark LME copper edged higher on Wednesday, hovering around 2012 highs on optimism about a global economic recovery that bodes well for metals demand, against the backdrop of tightening supply.

Extending its rally into a fourth consecutive session,three-month copper on the London Metal Exchange rose as much as 0.3% to $8,432.50 a tonne in early trade. It hit $8,437on Tuesday, its strongest level since May 2012.

Copper, which is often used as a gauge of global economic health, defied a firmer U.S. dollar that usually dampens the appeal of greenback-priced metals.


* Goldman Sachs and Citi have raised their 12-month price target for copper to $10,000 a tonne, while ANZ reiterated a12-month target of $9,000 a tonne "with risk skewed to theupside".

* Global copper smelting activity fell in January, led by Europe and North America, as pandemic lockdowns dampened industrial activity.

* The Shanghai Futures Exchange is set to reopen on Thursday after a week-long Lunar New Year holiday in top metals consumer China.

Follow us on Telegram, Facebook, Twitter, Instagram, YouTube and Linkedin. You can also download our Android App or IOS App.

Published on February 17, 2021
  1. Comments will be moderated by The Hindu Business Line editorial team.
  2. Comments that are abusive, personal, incendiary or irrelevant cannot be published.
  3. Please write complete sentences. Do not type comments in all capital letters, or in all lower case letters, or using abbreviated text. (example: u cannot substitute for you, d is not 'the', n is not 'and').
  4. We may remove hyperlinks within comments.
  5. Please use a genuine email ID and provide your name, to avoid rejection.