The Globe and Mail reports in its Thursday edition that industrial metals have recently taken centre stage in financial markets. The Globe's Tim Shufelt writes that these are materials at the heart of global construction and manufacturing, and collectively, their prices have risen by more than 75 per cent since bottoming out in March, 2020. "Copper is the new oil," Goldman Sachs analysts declared. On Tuesday, the price of copper on the London Metal Exchange hit $9,965 (U.S.) a tonne, and is close to surpassing the record high set in 2011. The dominant force behind the bull market in copper and other base metals over the past year has been Chinese demand. Now, with China's postpandemic economic rebound set to cool off, some analysts believe growth in the rest of the world is well on the way to picking up the slack. "Undoubtedly, China's call on refined metals markets has been strong," Colin Hamilton, managing director of commodities research at BMO Capital Markets, said in a note. "When combined with the competition for units emerging from the rest of the world, this demand [change] in such a short space of time has strained supply chains and resulted in the commodity price levels we are currently witnessing."
© 2021 Canjex Publishing Ltd. All rights reserved.