Copper prices on the London Metal Exchange rallied this week, but with many parts of Asia on holiday for the Lunar New Year, the effect of the rally on spot markets is yet to be seen.
Red metal's price on LME rise to its highest since May 2012 LME cash/three-month copper spread remains in backwardation with LME on-warrant stock dropping week on week US copper premium strengthens amid weather woes Premiums for other markets flat much of Asia on holiday
Copper prices rise to 9-year highs
The LME's three-month copper price rose to $8,437 per tonne on Tuesday February 16 - a level not seen since May 2012 - before eventually closing at $8,405.50 per tonne.
Investor sentiment toward copper is strong due to positive macroeconomic dynamics - reflation, reduction in Covid-19 cases, supportive policies - along with signs of restocking in China, which points to a likely acceleration of demand after the Lunar New Year, and very tight concentrate market conditions due to supply delays in Chile, Fastmarkets analyst Boris Mikanikrezai said.
Mikanikrezai noted that while short-term momentum...