Biden Stimulus Adds Fuel to Copper Rally

Investors are ramping up wagers that the Biden administration’s focus on economic stimulus and electric vehicles will turbocharge a monthslong climb in copper and other industrial metals.

Even though they slid alongside other commodities Friday, most actively traded copper futures are still up more than 2% so far in 2021 and near their highest level since early in 2013. They have been lifted by buoyant demand from China and wagers that an improving global economy will further increase consumption later this year.

Copper and other raw materials such as zinc and aluminum are the building blocks of construction, used to manufacture everything from computers to houses. That makes their prices extremely sensitive to momentum in the global economy and Chinese growth. China is the world’s largest commodity consumer by far and is responsible for about half of global demand for copper and other metals.