Copper back to £7 / kg as stocks rise to 238 kT

August 3, 2021by Ruth Smart

After falling from it’s recent high of £7.4 / kg to under £7 /kg copper is once again increasing in value even though stock levels continue to rise.

Normally I would expect the price to fall as supply exceeds demand but speculators must be convinced that recent reductions in demand are temporary and will resume as soon as Covid disruption in China eases.

The recent lifting of social restrictions in the UK following mass vaccination is an indication that the world’s major economies can now start to open up again, releasing pent up demand. So I expect copper to stay at £7 / kg for the foreseeable future and we are pricing contracts on that basis.