- Copper climbed 3% to $5,318/ton, while nickel and other industrial metals also jumped, according to final closing prices for three-month contracts on the London Metal Exchange, as an easing of coronavirus lockdowns in many countries and hopes for a vaccine spark optimism.
- Copper prices (HG1:COM) fell from ~$6,300/ton in January to a four-year low of $4,371/ton in March as the virus spread, but have recovered as top consumer China reopens.
- "Momentum is still behind copper, so it can go on for some time, but current levels are already elevated," says Commerzbank analyst Eugen Weinberg, forecasting that said a ballooning surplus will push prices back below $5,000/ton before they recover to ~$5,600 by year-end.
- Relevant tickers include FCX, BHP, RIO, SCCO, TECK, HBM, OTCQX:AAUKF, OTCPK:AAUKY, OTCPK:GLCNF, OTCPK:GLNCY, OTCQX:FSUMF, OTC:ANFGF
- ETFs: JJCTF, COPX, DBB, CPER, JJC