Copper prices surged past $10,000 per tonne on Friday, driven by predictions from Citigroup analysts that the industrial metal could revisit these levels. This optimism stems from anticipated policy support in China, the world’s largest consumer of copper. The Third Plenum meeting in mid-July is expected to introduce further stimulus aimed at upgrading China’s renewable energy infrastructure.
Citi analysts highlighted that these additional measures, particularly those targeting domestic property and grid investments, are likely to bolster copper prices in the near term. The bank pointed out that the recent decline in copper prices was primarily due to weaker global manufacturing data, which they believe is a temporary setback.
Despite a softening in cyclical demand during June, Citi noted that overall copper consumption for the first half of 2024 remains strong, with a year-over-year growth of around 4%. Looking ahead, the metal has the potential to climb even higher, possibly reaching $12,000 per tonne as major economies begin to implement rate cuts.
Market confidence was further boosted when US Federal Reserve Chair Jerome Powell stated earlier this week that inflation is trending downward, hinting at potential monetary easing. This sentiment contributed to the rise in copper prices, which in afternoon trading in Chicago saw copper for September delivery climb over 3%, reaching $4.67 per pound or $10,300 per tonne—the highest in over a month. Notably, in May, copper set a record high, exceeding $11,000 per tonne.
London-listed company KEFI Gold and Copper plc (LON:KEFI) is an exploration and development company focused on gold and copper deposits in the highly prospective Arabian-Nubian Shield. The Company operates in Ethiopia and Saudi Arabia with projects including Tulu Kapi project, Jibal Qutman EL and Hawiah.
