Copper has risen in price by more than 10% in six weeks and continues to grow

After a temporary lull, copper prices resumed their upward trend following the confirmation by the US Federal Reserve of plans to cut interest rates three times this year. 

Over the past 6 weeks, the value of the metal has increased by more than 10%. This week, quotations on the New York Mercantile Exchange reached an annual maximum of $4.15 per pound, after which the quotations adjusted downwards. Today, trading showed an increase of about 1.5%, settling at $4.11 per pound. On the London Metal Exchange, the price of copper rose 1.6% in the morning to $9.067 thousand per ton.

Among the main drivers of price growth, analysts highlight optimism related to expectations of an improvement in the global economy, as well as concerns about possible supply problems.

The forecasts of analysts from Goldman Sachs suggest an increase in tension in the copper market in the near future. They expect a shortage in the market by 2025 against the background of a combination of extremely low levels of metal reserves, rapid demand for copper (due to the transition to a «green» economy) and low price elasticity.