Dec 4, 2020 - Economy & Business

Copper prices reach highest peak since 2013

Data: FactSet; Chart: Axios Visuals
Data: FactSet; Chart: Axios Visuals

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.
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