Copper Rules The Roost

It can be predicted that copper may see further bullish momentum that may be attributed to increase in spot demand due to decrease in storage levels at the London Metal Exchange

During the recent fortnight, copper managed to steal the spotlight in the commodities market. For three successive weeks, copper showed a positive trend in its prices. It was noticed that copper bubbled its way to its highest level almost over a decade, traceable to the global recovery in metals market along with rise in Chinese demand. In the global markets, copper prices have rallied this year as demand for the metal, which is used in the production of electric vehicles, is expected to rise partly as it will actively participate in the global push for a green economy. 
"Copper bubbled its way to its highest level almost over a decade, traceable to the global recovery in metals market along with rise in Chinese demand."

Reports say that copper has gained 26 per cent on the London Metal Exchange. It can be predicted that copper may further see bullish momentum which can be attributed to an increase in spot demand due to decrease in storage levels at the London Metal Exchange. Meanwhile, silver prices surged up on the back of industrial demand recovery from electric vehicles (EVs), power construction, solar deployment, etc. The adverse climate condition forecast in US’ largest cotton-producing state, Texas, bundled with weakening domestic currency and declining supply in the physical market led to a boost in cotton prices.

Further, aluminium prices traded on a positive sentiment due to the supply worries in China and Russia. Coming to the oil prices, they traded calm over demand growth worries from pandemic-hit India. Gold rates rallied this month, supported by weakness in dollar and easing of US’ bond yields. The data recorded during the fortnight on MCX shows that all the commodities except gold recorded gains. Out of all the positive performers, the performance of copper caught the investors’ attention.

MCX Copper reported a rise of 5.58 per cent during the fortnight. Following copper was MCX Lead, recording gain of 4.06 per cent. MCX Silver and MCX Aluminium rose by 3.64 per cent and 3.08 per cent, respectively. MCX Cotton and MCX Zinc reported gains of 2.39 per cent and 2.09 per cent, respectively. Crude oil prices and Brent oil prices chose to remain calm by giving an increase of a mere 1.75 per cent and 0.92 per cent, respectively. The only commodity to record a slight dip was MCX Gold, which declined by 0.26 per cent.