The London Metal Exchange (LME) copper price rose to $9500 per metric ton (SGD 12770), approaching a 15 month high, against the backdrop of reduced supply risks and improved demand prospects. Since the beginning of this year, it has risen by over 10%, becoming one of the best performing industrial metals, reflecting the overall upward trend of commodities and potentially triggering inflation risks.

The LME copper price hit $9523 per metric ton on April 9th, maintaining a level close to $9500 per metric ton. The report points out that global mining interruptions threaten the output of China, the largest producer. As global manufacturing recovers and the Federal Reserve seeks monetary easing policies, the demand outlook for this critical energy transition metal is improving.

Citigroup stated that copper prices are approaching a 15 month high, in the second bull market of the century, and are expected to rise further driven by decarbonization related demand. The overall price of commodities has risen, with copper being just one of them. The S&P Goldman Sachs Commodity Index (GSCI), which measures global commodity prices, has risen by a cumulative 13.1% so far this year, surpassing the 9.2% rise of the S&P 500 index during the same period.

Source: Morning Post (https://www.zaobao.com.sg/realtime/world/story20240410-3362695)