Copper prices rose to the highest since March 2013 on Thursday, spurred by substantial increases in orders from China and expectations it will be a major component in new green energy projects.
Why it matters: Dr. Copper, as the metal is affectionately known, is a bellwether for the economy because it is used for wiring, piping and in most construction projects and household appliances.
- Prices have risen by nearly 25% this year.
What they're saying: “This current price strength is not an irrational aberration, rather we view it as the first leg of a structural bull market in copper,” Goldman Sachs analysts said in a research note Monday.
- Goldman raised its 12-month forecast for copper to $9,500 per metric ton, up from a previous estimate of $7,500.