Categories: Base Metals / General Market Commentary
Topics: General Base Metals / General Market Commentary

Of 22 banks polled NO-ONE sees copper price rally continue

Of 22 banks polled NO-ONE sees copper price rally continue

The surge in the copper price to near 18-month highs following Donald Trump's win in the US presidential election came as a surprise to an industry under pressure since 2011 over growing supply.

The bullishness about the impact of Trump's $500 billion infrastructure plans on demand for the bellwether metal has cooled down considerably.

In pre-regular hours trade on Thursday copper for delivery in December declined slightly to trade at  $2.458 per pound ($5,418 a tonne) in New York, a fifth down day in a row. Copper is down 10% from intra-day highs of $2.73 a pound last week.

After underperforming other metals and steelmaking raw materials in 2016, copper is still looking healthier than pre-Trump with a 15% rise year-to-date.

However,  according to a new survey of 22 investment banks and other commodity research institutions by FocusEconomics analysts and investors continue to call into question the sustainability of the rally.

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