Copper prices surge to three-year high
Market overreacting to minor supply disruptions, say analysts, but metal is most favored over medium term
The price of copper has jumped 20% since the end of May, pushed up by encouraging economic data coming out of China, a weak US dollar, and regulatory moves by Beijing to ban scrap imports.
Analysts have been caught off guard by the price surge, the Financial Times reports, with most believing the price has gone too far. Plentiful supply will put pressure on prices, many say, and the market has overreacted to the import ban and other minor supply disruptions.
Some also see the US dollar recovering on strong economic data moving forward.
Despite all this, copper is still the most favored metal among analysts in the medium term due to rising demand for electric vehicles.