There’s a compelling case for copper to suddenly follow zinc’s epic trajectory two years ago
1st March 2019
Resources Rising Stars
Copper is on a tear in 2019 but it could be sign of a bigger things to come (reports Stockhead).
The problem is, when it does take off, who’s going to be ready for it?
MineLife director Gavin Wendt said the current price action reminds him of zinc prices a couple of years ago, which soared more than 250 per cent in less than two years.
Back then, it was about a looming supply deficit, but nobody knew when the pressure would actually release.
Sound familiar? Then let’s take a look at copper right now.
Copper has rallied over 10 per cent this year to US$6,457.50 ($9039.50) per tonne — its highest level since early July last year.
The recovery has been driven by more positive market sentiment generally, and for copper specifically, the belief that more supply is needed, right now, to satisfy demand.
The LME’s copper numbers show a drop in warehoused material from 385,000 tonnes at this time last year to about 133,825t today.
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