Copper and iron ore prices hit record highs on Friday, driven by strong demand, especially from China, and a weak dollar.
Copper reached $ 10,311 a ton on the London Metal Exchange (LME) shortly before 09:40 GMT, beating its previous February 2011 record. Iron ore reached $ 202.65, for the first time according to the index. reference compiled by S&P Platts since 2008.
“The rise in commodity prices shows no signs of abating,” say analysts at Deutsche Bank.
The appetite for the red metal comes mainly from China, which absorbs half of the world’s production, while iron ore was appreciated by the strong demand for steel, of which it is an essential component.
After several holidays in China after May 1, demand has exploded, pushing prices to new records.
“The return to work in China has allowed iron ore to hit an all-time high,” says Julien Hall, an analyst at S&P Global Platts, adding that “May is considered the peak construction season.”
Commodity prices are also driven by the weakening of the dollar, which has lost more than 0.5% of its value against a basket of currencies in the last three sessions, making it more attractive to investors with other currencies.
Widely used in industry, especially to make electrical circuits, copper is also known to reflect the health of the world economy.
The price of the red metal, which recovered from its 2020 low of $ 4,371 on March 19, has more than doubled since then and is well above its level prior to the start of the coronavirus pandemic.
Likewise, tin, used in electronic circuits, automotive components and batteries, traded at $ 30,280 a ton on the LME on Thursday, the most watched price since May 2011.
Prices for palladium, a precious metal, hit $ 3,018 an ounce for the first time in history on Tuesday, driven by supply problems at a time of rising demand.
Palladium is used primarily by the automotive industry to make catalysts, and its demand has been driven by increasingly stringent anti-pollution standards around the world.
Gold, which had been falling since January 1, found a price above $ 1,800 an ounce on Thursday and Friday for the first time since February 25.
bp / jbo / oaa / mas / mar