Miners benefit as copper rallies

Copper hovers around decade highs on economic recovery optimism & the green revolution. Copper miners have outperformed the broader market, with Anglo American looking towards its highest level in a decade.

Commodities 6

Miners benefit as copper rallies 

Copper is often referred to as the bellwether for the global economy. It’s ability to signal an economic recovery has earned it the name Dr. Copper. 

Copper prices broke briefly through $10,000  a decade high, for the second time this week as optimism surrounding the global economic recovery post covid has sent demand expectations through the roof. 

Reopening rally 

Demand is primarily from the US and China, the world’s two largest economies. China is firmly on the path to the strong growth it was experiencing pre-covid, requiring huge amounts of copper for infrastructure and also wiring homes.  

In the US growth is picking up firmly after the pandemic. Optimism surrounding President Biden’s infrastructure programme has boosted metal markets, with copper a clear beneficiary. This near-term upside from stimulus is already working through the market.  

Green revolution 

However, there is another dimension, here. The longer-term driver of copper - the green aspect. Many green, clean energy alternatives involve the use of copper. Solar panels are just one example. Electric vehicles are another. As the green revolution and electrification of automobiles gather pace copper consumption is rising quickly. 

As Biden looks to re-establish the US at the forefront of all things green demand for copper is expected to keep on rising potentially accelerating. 

Learn more about trading EV’s 


Where next for copper? 

The copper price topped a decade high of $10,000 for the second this week, nearing the all time high of $10,190 in February 2011. The price of copper has more than doubled from covid lows and momentum remains on its side. 

Copper futures today struggled at resistance of $4.5725 per pound for a second time this week before easing lower. Even so the uptrend remains intact whilst the price holds above $4.49 per pound. 

Learn more about trading copper prices


Copper miners 

In addition to the commodity itself copper miners are also worth keeping an eye on. Antofagasta, Anglo American and Glencore have all surged around 25% so far this year compared to the FTSE’s 9% rise and have rallied around 120% over the past 12 months.  


Where next for Anglo American share price? 

The Anglo American share price trades above its multi month ascending trendline and its 20 & 50 EMA on the daily chart in a bullish trend. The RSI is supportive of further upsides.  

However, the recent rally has run into resistance at 3245p its highest level in a decade. A move above this resistance is required to head towards 3350 the 2011 high and on towards 3550 the 2008 and all-time high. 

Failure to take 3245p could see Anglo American continue to consolidate between 3030 and 3245p. It would take a move below 3030p to negate the current near term bullish trend. 


Build your confidence risk free

More from Copper

Join our live webinars for the latest analysis and trading ideas. Register now

StoneX Financial Ltd (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.

No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

For further details see our full non-independent research disclaimer and quarterly summary.