Will the base metals rally last?
The price of copper, hit $7,000 a tonne last week, driven by soaring Chinese demand. Other metals are also on the way up. But can it continue?
Doctor Copper is in fine form, reports Tom Howard in The Times. The red metal hit $7,000 a tonne last week, a 28-month high. Used in everything from “electric vehicles to telecoms to water pipes”, it is a key gauge of the health of the global economy. Copper has gained more than 10% this year.
The principal cause has been soaring Chinese demand, says Andy Home on Reuters. Smelters are racing to keep up with a construction and infrastructure boom triggered by a stimulus. By October China had already imported more refined copper than it did during the whole of last year. Bulls are also banking on higher US demand if Biden passes green spending plans, adds Howard. Meanwhile, civil strife in Chile (see page 12) is contributing to supply disruptions; the country accounts for 30% of global copper supply.
Other metals are also shining, writes Will Horner in The Wall Street Journal. Tin has hit a 15-month high. Aluminium had lagged its peers thanks to a “glut” of stockpiles but is now rising. Close to 18-month highs, the metal has been lifted by robust global car demand and speculators banking on a catch-up rally. But don’t bet on an “out-and-out bull run”, cautions Capital Economics. Beyond China, the metals demand outlook remains shaky. The rally may have a bit further to run from here, but by 2022 ebbing Chinese stimulus could see prices heading back down.
MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Get the latest financial news, insights and expert analysis from our award-winning MoneyWeek team, to help you understand what really matters when it comes to your finances.
Alex is an investment writer who has been contributing to MoneyWeek since 2015. He has been the magazine’s markets editor since 2019.
Alex has a passion for demystifying the often arcane world of finance for a general readership. While financial media tends to focus compulsively on the latest trend, the best opportunities can lie forgotten elsewhere.
He is especially interested in European equities – where his fluent French helps him to cover the continent’s largest bourse – and emerging markets, where his experience living in Beijing, and conversational Chinese, prove useful.
Hailing from Leeds, he studied Philosophy, Politics and Economics at the University of Oxford. He also holds a Master of Public Health from the University of Manchester.
-
Millions of state pension records ‘set to be deleted’ – putting thousands at risk of never getting their money
Thousands of families could miss out on money owed to them if the government deletes historic state pension records.
-
What makes you wealthy in the UK? Could it make you a target in Rachel Reeves’ Budget?
Wealthy Brits could be at risk from a Budget tax raid – but how much money do you need to be considered wealthy in the UK?
-
Pierre-Édouard Stérin wants to make France great again
Conservative billionaire Pierre-Édouard Stérin is seeking to lead a political and spiritual renaissance across the Channel. The planning looks meticulous
-
Global investors have overlooked the top innovators in emerging markets
Opinion Carlos Hardenberg, portfolio manager, Mobius Investment Trust, highlights three emerging market stocks where he’d put his money
-
Pinewood Technologies: a drive for growth
Pinewood Technologies’ platform is one of the best in the business. Investors should buy in
-
'EV maker Faraday Future will crash'
Faraday Future Intelligent Electric is failing dismally to live up to its name, says Matthew Partridge
-
Investors should cheer the coming nuclear summer
The US and UK have agreed a groundbreaking deal on nuclear power, and the sector is seeing a surge in interest from around the world. Here's how you can profit
-
8 of the best houses for sale with follies
The best houses for sale with follies in the grounds – from a five-storey Victorian Gothic tower in Tonbridge, Kent, to a former mill in Oxfordshire with gardens that include a folly on an island in a lake
-
A tale of two Reits – why performance matters for valuation
AEW UK and Regional are two Reits that are valued very differently, despite a shared focus on properties outside London
-
Healthcare stocks look cheap, but tread carefully
Shares in healthcare companies could get a shot in the arm if uncertainty over policy in the US wanes, but are they worth the risk?