Joseph Hoppe of The Wall Street Journal reports that the green transition and increased use of AI applications are feeding demand for copper, while sanctions on Russian metals push aluminum prices higher. Hoppe writes:
Copper and aluminum prices both breached their highest levels since 2022 and 2023, respectively, as global demand picks up and supplies tighten.
Copper three-month futures in London rose 1.2% to $9,582 a ton, having peaked earlier in the session at $9,616.5, a price last seen in June 2022. Aluminum futures likewise gained 1.1% to $2,587 a ton, having earlier hit $2,593, last seen in February, 2023. […]
Aluminum has also posted strong gains, as the market continues to digest the latest sanctions on Russian metals. Over the weekend, the London Metal Exchange banned the delivery of new Russian metal, including copper and aluminum, after sanctions imposed by the U.S. and U.K., ING analysts said in a note.
The implications for premiums should be bullish—particularly aluminum in Europe—as non-Russian material is sought out, Macquarie’s head of commodities strategy, Marcus Garvey, said in a note.
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