BHP’s copper pivot pays off as prices near record highs

InvestorDaily

As copper closes in on record highs this week, ETF Shares chief investment officer David Tuckwell has said tight supply and surging demand are reinforcing the metal’s long-term case and supporting BHP’s copper-led pivot. Copper has surged above US$14,000 a tonne this week, edging close to its January record high of US$14,500 as markets largely brushed aside earlier concerns over the Iran war. Despite sharp declines in the early weeks of the conflict amid fears of a major hit to the global economy, the future-facing metal has now climbed 13 per cent so far this year. 

According to Bloomberg reporting, the recent rally has been driven by a recovery in Chinese demand and tighter Middle Eastern sulfur supply, which is a key input in some copper production processes. It has also become increasingly correlated with US equity markets, with expectations of higher copper use in electrical wiring rising as AI-related stocks surge. The rally has come even in the face of a fragile Iran war truce and renewed inflation pressure, with US inflation jumping to 3.8 per cent in April — its highest in three years.  

The rest of this article can be found at investordaily.com.au.