A strong economic recovery, increased push for renewables, depleted inventories and the supply challenges all together are keeping the sector well positioned. Strategists at ANZ Bank reiterate a 12-month price target of $9,000/t, with risk skewed to the upside.
Key quotes
“China continues to drive growth in demand. Fixed Asset Investment growth looks resilient for all the key sectors. Grid investment is picking-up quite well, construction is rising and auto sales are seeing double-digit growth.”
“Copper demand has been boosted by strong investment in renewable energy and electric vehicles (EV). EV sales continue to race ahead. However, investment in recharging infrastructure is what is benefitting copper demand.”
“Copper still holds upside potential to rise above $9,000/t amid strong Chinese demand and falling inventories.”
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