Copper, a bellwether for the global economy, rose as much as 2.4% to $9,780 per tonne in London
Copper climbed to the highest in almost a decade as the global recovery from the pandemic extended a rally in metals markets.
Aluminum is surging and iron ore jumped to a fresh high as commodities advance toward the highs of the last supercycle. Metals are benefiting as the world’s largest economies announce stimulus programs and climate pledges as they rebuild from the coronavirus shock.
The US recovery is accelerating and President Joe Biden’s $2.25 trillion infrastructure plan will highlight sectors like electric cars, driving further gains in commodities critical to the green energy transition. That’s coming alongside a continued economic boom in China, where a push to reduce emissions is filtering through to supply cuts for some metals just as demand is picking up.
“The super part of the copper supercycle is happening right now,” Max Layton, managing director for commodities research at Citigroup Inc., said by phone. “The bullish outlook is decarbonization-led, and I’m totally on board with that for the next three to four years, but the super part of this cycle is actually more related to the scale of global stimulus.”
Copper — a bellwether for the global economy — rose as much as 2.4% to $9,780 a metric ton in London, the highest since August 2011, and settled at $9,751 at 5:51 p.m. local time. The metal has gained 26% on the London Metal Exchange this year. Iron ore in Singapore jumped to the highest since contracts launched in 2013, while Chinese steel futures reached fresh highs.
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