– Wealthtalk news
Copper prices are soaring amid a broad rally in metals from iron ore to nickel. Copper is used in many construction materials, including electrical wires and water pipes. The nonferrous metal has doubled in price since last year April despite the negative impacts of the COVID-19 pandemic on both the mining commodities and the mining industry in general.
The base metal has gone beyond $10,000 per ton for the first time in a decade and has since been among the best performers in the base metal market. This bull market rally is influenced by stimulus measures, near-zero interest rates and the global economic recovery from Covid-19. Investors in the commodity can anticipate a rise in demand for infrastructure and construction projects in the post-pandemic economy.
Considering that the prices of copper are mainly influenced by the state of the global economy and it’s known that a bullish market suggests a healthy global economy while on the other hand a bearish market suggests a sinking ship. With that being said it’s safer to say the global economy in 2021 is in the right path hence the soaring copper prices.
According to Bloomberg, Copper’s surge toward a record high is starting to cause stress for industrial consumers in China, the world’s largest market for the metal.