Copper is poised for its best quarter since 2010, helped by optimism over a stronger-than-expected demand rebound in top consumer China and mounting supply concerns in South America.
The metal used in everything from automobiles to electronics has surged 21% this quarter, and climbed above $6 000 a metric ton last week for the first time since the Covid-19 outbreak became a global pandemic.
Prices have rallied steadily over the past three months, fueled by sentiment over consumption prospects as first China and then other large economies began to ease lockdowns. While a new wave of infections adds risk to the demand outlook, the market is getting support from global economic stimulus and concern over mine shutdowns. A report Friday showed hedge funds cut bearish bets on U.S. copper futures and options to the lowest since 2018.