(Bloomberg) -- Copper in London hit the highest in more than seven years amid deepening concerns that miners will struggle to match demand as a global recovery bolsters this year’s China-driven boost.
The metal used in wires and cables is on the cusp of a fifth weekly advance, in a powerful rally fueled by hopes that developed-world demand will follow China as the coronavirus crisis eases next year.
“It’s a favorable environment from a price point of view,” Ivan Arriagada, chief executive officer of Chilean miner Antofagasta Plc. said in a Bloomberg TV interview. China’s demand “has been sustained quite strongly”, he said, and the global copper market is heading for a slight deficit next year.
Progress toward coronavirus vaccines has bolstered prospects for an improvement in the world economy that should boost metals usage. For copper, an expected wave of spending on metals-intensive green infrastructure is also drawing in investors.
Copper rose as much as 1% to $7,750, the highest since March 2013, by 1:37 p.m. Shanghai time. Aluminum and zinc also rose.
©2020 Bloomberg L.P.