Will Copper’s 135% rally break the all-time high?

By Admiral Markets

The price of copper has been a monster rally since the lows of the pandemic in 2020. Only a year later and the metal dubbed ‘the new oil’ is up by more than 135% and threatening to break to a new all-time high.

The demand for the metal has caused investment banks such as the Bank of America to state that the world is running out of copper due to supply deficits. They highlight that inventories are now at levels seen 15 years ago which can only cover three weeks of demand.

As the global economy starts to reopen, a huge surge in demand for copper is expected, potentially driving prices up even further.

Source: Admirals MetaTrader 5, COPPER, Monthly – Data range: from Jan 1, 1990, to May 6, 2021, performed on May 6, 2021, at 8:30 pm GMT. Please note: Past performance is not a reliable indicator of future results. 

The long-term price chart of copper shown above shows a very choppy trend. However, the recent surge higher in the metal has occurred before, most notably from 2001 to 2006 and 2008 to 2011.

With demand increasing and supply levels remaining constrained, analysts are forecasting a break to new record highs and the start of a new commodity super cycle, making it a metal to watch.

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