Copper: Expect a pick-up in demand growth

Sharp price recovery has further to run...
The LME copper price has rebounded sharply since it hit an intraday low of $6,089 per tonne on January 3, as the risk-off response to the escalation of US-Iran geopolitical tensions proved short-lived. However, its quarter-to-date average dropped to $6,175 per tonne last week, compared with $6,185 per tonne in the prior week, around $225 per tonne or 3.5% below our Q1 2020 base case target of $6,400 per tonne.

...as macro factors are mostly positive

Copper’s cross-correlation with the rest of the base metals has moved higher since the start of...