Copper rules the roost; prices climb close to lifetime high

In the commodities market, copper is stealing the spotlight as its prices are seen climbing near to lifetime high in the domestic bourses. 

The weakening of the dollar and signs of recovery shown by the biggest economies from the virus impact can be traced to the increased demand for copper. In the global markets, copper prices have rallied this year as demand for the metal, which is used in the production of electric vehicles, is expected to rise partly as it will actively participate in the global push for a green economy. 

Reports say that copper has gained 26 per cent on London Metal Exchange. It can be predicted that copper may further see bullish momentum, which can be attributed to an increase in spot demand due to a decrease in storage levels at London Metal Exchange. The market is witnessing the demand for copper becoming more resurgent but there is a supply squeeze at the same time. This in turn is exerting significant pressure on the copper price.  

On MCX, Copper Futures having May delivery were trading at Rs 778.15 on Friday and have recorded a gain of around 30 per cent in 2021.