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Copper soared to an all-time high as optimism about a global rebound from the pandemic boosts commodities markets.
The metal - an economic bellwether - is front and center in a rally that’s driven raw materials from lumber to iron ore to multiyear highs or records. Stimulus measures and vaccine rollouts are fuelling prospects for a resurgence in demand that’s set to strain supply, while copper’s crucial role in the green-energy transition is set to underpin longer-term gains.
Big banks and others including trader Trafigura Group have rolled out a list of lofty price targets, with the latter predicting copper will hit $15,000 a ton in the coming decade as decarbonisation drives more consumption. At the same time, the pandemic has disrupted trade flows in the short-term and a lack of mine investment is set to see the market short of the supply needed to meet demand.