Bullish sentiment drives copper price to 8-year high: MI

London — The copper price bull run has continued in the New Year, with the London Metal Exchange cash benchmark surging to $8,146/mt Jan. 8, the highest closing since February 2013, S&P Global Market Intelligence said.

The bullish investor sentiment for copper was stoked by news of supply disruptions in Peru, a major US coronavirus relief package passing into law, the Democratic Party gaining control of the US Senate and optimism over the global coronavirus vaccine rollout, which is fueling hopes for a stronger global recovery as 2021 progresses, MI said Jan. 14.

Continued dollar weakness also boosted investor appetite for copper into the New Year. The near-term downside risk for copper prices is heightened, however, by the emergence of new, more transmissible variants of COVID-19, which have triggered new lockdown restrictions across Europe and parts of the US.