Baxia Markets
July 07, 2021

Copper Rises Amid Strong Demand

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In June, US companies hired the most workers in 10 months. With the government’s stimulus support and the economy recovering, companies are offering higher wages and incentives to entice millions of unemployed Americans as we speak. “Wage growth tends to lead to strong demand for durable goods, a key sector for the metals markets,” said ANZ analysts in a note. It is reasonable to expect a boost in metal demand.





Global copper smelting activity declined in June after a rebound a month earlier, mainly because Chinese plants closed for maintenance. “In copper, the narrative remains one of a slow march towards normality with material divergences at a regional level,” said Guy Wolf, global head of analytics at Marex, which helped to develop SAVANT. With the supply side relatively stable and unchanged but bigger demand on the horizon, the copper price might see a sizable increase, ending the downward trend since mid-May.


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