The Wall Street Journal reported on Sunday that copper prices look to be making a comeback, as the metal rose over 3% last week. Drivers behind those gains include increased confidence in the global economy and statements from Glencore Plc (LSE:GLEN) forecasting strong demand from both China and the West for the red metal.
As quoted in the publication:
Prices rose 3.3% last week, after a major commodities trading house surprised markets with an upbeat forecast for copper demand in the second half of this year, while data from the U.S. show an economic rebound is gaining traction. Some investors also believe China, the world’s largest consumer of the metal, may be preparing to launch a second round of economic stimulus, which could further boost copper demand. Copper’s rally has nearly reversed a sharp drop recorded earlier this month, although prices are still down about 7% for the year.
François Bourdon, chief investment officer for Fiera Capital in Montreal told the Journal:
In our mind, it’s going to be the U.S. story driving commodity prices from this point, rather than China.