Copper at near record highs boosted by use in renewables

After reaching a record high last February, the price of copper has undergone corrections to continue its bull run, albeit more volatile, on the London Metal Exchange. It has doubled in value on the London Metal Exchange since March 2020, when, like all assets, it was affected by the pandemic. It now stands at more than 9,000 dollars a tonne, awaiting in the short term the evolution of China's economic policy and also the stimuli approved by the current president of the United States, Joe Biden.

The red metal has been and is one of the thermometers of the situation of the world economy due to its industrial and construction applications. As a consequence, it is also a clear target for funds and other investors, which is now being blamed for the sharp reduction in stocks due to speculative movements at the disposal of end customers.

Meanwhile, production remains at high levels, although experts point out that future reserves may be scarce also due to the evolution of demand. This is due, in large part, to the increase in demand due to the recovery of the economy. It is now the first factor, but behind the evolution of the red metal, the best conductor of electricity, a future looks promising. Copper futures on the London market for three-month delivery are above 9,500 dollars a tonne, approaching the all-time high of 10,000 dollars.

The new momentum comes from the use of copper in renewable energy. The price will rise to record highs in the next twelve months by the strong demand that comes with the momentum of renewable energy, it is noted from the Chinese metals broker Maike Group,

China, which is the main consumer of the red metal, is now focusing its energy development with renewable plants that require copper and other base metals, which are also for the manufacture of electric cars, they add from the broker.