Copper prices hit a new high of $9,618.80/t amid optimistic market expectations for a rapid recovery in global industrial production. Copper is widely used in industry, so any signs of improvement are priced in by investors in a positive way.
The next key macro data driving the price of copper will be China’s February manufacturing PMI, which is due out on February 28. The same data point will be released stateside next week. If the reading comes in strong, copper prices will get a new impetus for growth.
If the current price trend evolves in an upbeat manner, copper could rally up to $10,000/t, especially if the ongoing correction proves to be sustainable.