The commodity market is attracting heavy bullish sentiments as silver, copper, gold, and the US dollar are printing new highs. On Tuesday’s opening bell alone, copper prices shot up 94.71 points surging 0.98% in the day’s trade. Buying pressure for copper increased significantly as investors’ risk appetite soared across the global commodity markets.
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The price of copper is reaching the psychological mark of $10,000 per metric ton this week. The last time it crossed $10,000 was in March 2022, when it hit a high of $10,845. The spike in price came in the wake of the Russia and Ukraine conflict giving the metal an uptick in the commodity market since then.
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Commodity Market: Copper To Reach $15,000 Next?
The market demand for copper increased as leading production firms around the world now use the metal for renewable energy. The demand for the metal surged while the supply remained scarce in 2024. For instance, the supply dipped as governments’ tightening of mining regulations, geopolitical tensions, and labor strikes led to lower supply. Simply put, the mines are not producing enough copper to meet the demand in the markets.
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The low supply and high demand are another reason that’s pushing copper prices to reclaim the $10,000 mark this month. The Globe And Mail has forecasted that that the demand for copper could reach as much as 33 MMT. It added that if the metal continues being scarce and the demand soars further, copper could reach $15,000 and become the top-performing asset in the commodity market.
Another report from Reuters highlighted that copper prices could go higher in the commodity market. However, the report remains doubtful if it can climb above the $15,000 mark by the end of 2024. Nonetheless, they predicted that investing in copper is promising and could deliver better results this year.
