Goldman doubles down: Record-high copper price within a year

Copper is trading more than $800 per tonne below the near-decade high hit in February, and some of the ardour of copper price bulls has cooled decidedly since then.

Goldman Sachs metals strategist Nicholas Snowdon, speaking at the virtual World Copper Conference on Tuesday, is squarely in the bull camp, however.

Snowdon doubled down on the investment bank’s view that the mining sector is at the start of a supercycle, citing three factors driving the boom in the broader commodity market:

Long-running structural underinvestment in the “old economy”,  including mining, infrastructure and industrial production, new redistribution policies ushered in by covid that target commodity-intensive social needs rather than financial stability and thirdly, a massive rise in government spending, particularly in the US.