The Financial Post reports in its Friday, April 5, edition that base-metal analysts and tarnished copper miners are optimistic on a potential bull trend in copper amid optimism around United States-China trade talks and growing scarcity of the metal that is offsetting concerns about a Chinese economic slowdown.
The Post's James Snell writes that copper hit an all-time high of $10,190 (U.S.) per ton in 2011, but has been on a roller coaster ever since. The metal, considered a key barometer of the global economy, hit a four-year high of $7,348 (U.S.) last June before plunging to $5,725 (U.S.) in early January. Since then it has clawed its way back to $6,426.50 (U.S.) per ton, up 7.7 per cent since the start of the year.
The upturn comes as a relief for the Canadian copper industry, which produces about 600,000 tonnes annually -- 3 per cent of global supply.
Canadian companies such as Hudbay Minerals (up 52.61 per cent year-to-date), Imperial Metals (up 71.88 per cent), Taseko Mines(up 10 per cent) and Capstone Mining (up 6.5 per cent) are among some of the major copper producers riding the latest copper rally.
Taseko's Brain Bergot says, "We believe the fundamentals for copper are getting stronger every day."
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