Copper prices jumped another 1.3% on the London Metal Exchange, bringing it near the $10,000 per ton for the first time since 2011, when it reached $10,190. Analysts believe it is only a matter of time before it hits a new record.
As tED magazine reported earlier this month, the price spike is triggered by a potential infrastructure program by the Biden Administration, a push toward using more clean energy, and an economic recovery that is moving along faster than supplies right now. There are some concerns that copper producers will not be able to keep up with demand for several months.
Checking Kitco’s monthly copper price chart, copper was selling at only slightly higher than $4 a pound on March 31, and dipped to $3.97 a pound on April 5. The price quickly rebounded, closing about $4.10 a pound on April 14, closed at $4.28 a pound on April 19, and on April 29 closed at $4.48 a pound.
Analysts seem split on price expectations into 2022, with some predicting a steep drop in prices over the next couple of months, while others believing the copper price will rise above $12,500 a ton by the end of next year.