Copper prices hit a near two-year high on Friday amidst supply concerns, with three-month copper on the London Metal Exchange reaching $9,866 per metric ton, the highest since April 2022. The surge was driven by increased buying activity from funds and a general inflow of money into the commodity space.
Industry experts are optimistic about the continued rally, with Citi projecting copper prices to reach $10,500 per ton, averaging $10,000 in the second and third quarters. This positive outlook is supported by the ongoing supply worries and the overall bullish sentiment in the market.
In addition to copper, nickel also saw a significant jump, reaching $19,300 per ton on Friday. This increase was fueled by concerns over tighter supplies from Indonesia and rumors of Chinese government purchases for stockpiles. The state stockpiler is reportedly seeking large quantities of nickel pig iron and refined metal, further contributing to the upward trend in prices.
The rally in base metals extended beyond copper and nickel, with LME aluminum, zinc, and lead also posting gains. LME aluminum advanced to $2,660 per ton, while zinc climbed to $2,856 per ton and lead gained ground at $2,217.50.
Overall, the base metals market is experiencing a period of heightened activity and price appreciation, driven by a combination of supply concerns, increased demand, and market speculation. As investors continue to monitor the developments closely, the outlook remains positive for the coming months.
