Chart of the week: Copper's revival

After plunging by a fifth last year, the copper price has jumped to their highest level in eight months: around $6,500 per tonne.

936_COTW

After plunging by a fifth last year, copper prices have jumped to their highest level in eight months: around $6,500 per tonne. Tight supplies and optimism over global growth boosted prices after President Donald Trump said he would delay an increase in tariffs on Chinese goods (see above).

The red metal is found in consumer products, cars and semiconductors. In 2018 global demand reached 23.6 million tonnes. By 2027, it could hit 30 million tonnes, representing an average annual growth rate of about 2.6%, according to Forbes. Electric vehicles use far more copper than their combustion-powered counterparts. Bullish sentiment has offset recent signs of a downturn in China, the main consumer of the metal.

Subscribe to MoneyWeek

Become a smarter, better informed investor with MoneyWeek.

Viewpoint

A government investment fund is to be created to take stakes in local companies and protect them from foreign takeovers. Altmaier also thinks thestate should play a leading role in the development of artificial intelligence and use billions of taxpayers' money to subsidise companies in the field. In other words, Germany wants to be a bit more like China. As if the German government had foolproof information on what investments are needed today to be successful in 30 years' time. Who needs socialists these days? German (and Austrian) conservatives are happily implementing their policies.

Franz Schellhorn, Profil (Austria)

Advertisement

Recommended

Visit/503514/the-charts-that-matter-tesla-hits-a-pothole
Economy

The charts that matter: Tesla hits a pothole

Electric-car group Tesla has had a rough week. John Stepek looks at what was behind it, and at the rest of the global economy’s most important charts.
16 Mar 2019
Visit/502522/the-charts-that-matter-the-tug-of-war-continues
Economy

The charts that matter: the tug of war continues

As the US Federal Reserve backs off, John Stepek looks at how quantitative tightening is affecting the global economy’s most important charts.
23 Feb 2019
Visit/501893/the-charts-that-matter-the-v-shaped-rally-stalls
Economy

The charts that matter: the V-shaped rally stalls

As the stockmarket rally peters out, John Stepek looks to the global economy’s most important charts to see where we might go from here.
9 Feb 2019
Visit/investments/commodities/600639/commodities-look-cheap
Commodities

Commodities look cheap

Gold may be on a bull run, but industrial commodities, including copper, zinc and aluminium, remain cheap.
17 Jan 2020

Most Popular

Visit/economy/600632/money-minute-friday-17-january-uk-weakness-likely-to-continue
Economy

Money Minute Friday 17 January: UK weakness likely to continue

Today's Money Minute previews UK retail sales figures the UK, inflation data from Europe and industrial production from the US.
17 Jan 2020
Visit/520525/currency-corner-how-high-can-the-pound-go-against-the-euro-in-2020
Currencies

Currency Corner: how high can the pound go against the euro in 2020?

In the month in which we should finally leave the European Union, Dominic Frisby takes a look at the pound vs the euro and asks just how high sterling…
13 Jan 2020
Visit/investments/property/house-prices/600638/uk-house-prices-may-be-heading-for-a-boris-bounce
House prices

UK house prices may be heading for a Boris bounce

The latest survey of estate agents and surveyors from the Royal Institution of Chartered Surveyors is "unambiguously positive" – suggesting house pric…
16 Jan 2020
Visit/investments/stocks-and-shares/share-tips/600636/class-acts-going-cheap-buy-into-europes-best
Share tips

Class acts going cheap: buy into Europe’s best bargains

Value investing appears to be making a comeback, while shares on this side of the Atlantic are more appealing on metrics such as price/earnings ratios…
16 Jan 2020