(LME) copper prices rose on Thursday on the London Metal Exchange as banks increased their bets on copper consumption this year and focused on its long-term role in the transition to a low-carbon economy.
17:00 London time (00:00 domestic time on April 16th)), LME copper for delivery in three months rose 2.31%, or $209.5, to settle at $9284 a tonne, after hitting a six-week high of $9299.
"the reason for this rally seems to be the very optimistic outlook of some investment banks, such as Goldman Sachs's view of copper, which are targeting higher and higher prices," said Carsten Menke, an analyst at Julius Baer. "
Copper is used in cables, buildings, and increasingly in electric cars and wind turbines. This triggered a wave of bets on surging demand and rising prices.
Copper prices are also used to measure the health of the global economy.
Goldman Sachs said copper prices could reach $15000 a tonne by 2025. The company also raised its 12-month target to $11000 a tonne and expects an average price of $9675 in 2021.
Goldman Sachs said: "[higher prices] should stimulate a wave of investment in mine supply that has so far been lacking, but if this trend does not start to materialize, or if demand rises unexpectedly, then prices could go higher."
Citi bank said on Monday that copper consumption in 2021 was likely to "significantly exceed our basic forecast" and advised customers to increase their copper holdings in the coming weeks.
China's copper imports rose 25 per cent in march from a year earlier, according to customs data.
Copper stocks at LME registered warehouses fell 2550 tonnes to 169475 tonnes, but have more than doubled since February.
The Philippines, China's largest supplier of nickel and a major producer of copper and gold, lifted a 2012 moratorium on new minerals.
Aluminium for three-month delivery rose 0.67 per cent to $2339 a tonne on Chinese supply concerns and the prospect of US sanctions against Russia, a major producer, having previously reached its highest level of $2356.5 since May 2018.
