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BofA guides for stronger 2020 copper finish

Copper is poised to rally to a new two-year high at US$2.95/lb by year end, according to analysis from Bank of America.
BofA guides for stronger 2020 copper finish BofA guides for stronger 2020 copper finish BofA guides for stronger 2020 copper finish BofA guides for stronger 2020 copper finish BofA guides for stronger 2020 copper finish

Bank of America sees copper prices approaching US$3/lb by year end

Henry Lazenby

A slump in economic activity in the wake of COVID-19 saw copper demand collapse, with prices plunging to a four-year low of $2.10/lb mid-March.

However, BofA analysts said a spike in M1 and M2 money supply metrics indicated a recovery was on the way, with copper prices set to rise as a result.

"In our view, that official spending has an immediate impact on economic activity,  it should ultimately help to kick-start economies. As such, while a host of risks persist, including a second wave of infections, we remain constructive [on] copper into year-end and see scope for the red metal to rise to $6,500/t ($2.95/lb)," said BofA.

Copper's price performance in the year to date certainly is one for the history books, achieving a 12-month high at $2.87/lb by mid-January, before plunging to its lowest level since 2016 at by mid-March.