Amid the ongoing recovery of global economics, prices for copper - one of the most important metals for the industry - reached US$8,000 per ton. That became a seven-year high for the metal, being by 70% higher prices for the same period of last year.
According to analysts, in addition to the ongoing recovery of industrial activities throughout the world, the current copper demand could be explained by the ever growing investments in green economy, primarily in China. According to forecasts, copper demand only in China in 2021 will increase by 800,000 tonnes thanks to the active government support of smart energy and renewable energy sources.
As Evgeny Kogan, an investment banker and author of the bitkogan Telegram channel told in an interview with the Russian Vedomosti business paper, “the main reason for such a high interest in commodities is related with the enormous liquidity as the United States, which continues to issue money at a rate of over US$100 billion a month.
According to him, in this situation, the dollar is weakening, while investors are looking for alternative, that could be in the form of commodities.
By: Eugen Gerden