Copper set to gain?
Futures contracts rose early yesterday morning on a Bloomberg report that President Trump's administration was preparing a $1 trillion infrastructure project. The money is to be set aside for roads and bridges as well as some being kept fro 5G wireless infrastructure.
Copper prices to rise above $6000?
If the US deliver on this large package this could well be the catalyst needed to take copper prices above $6000. As economies continue to gain pace around the world demand for copper is going to pick up in tandem. Goldman Sachs raised their 3,6,and 12 month forecasts to $6000,$6250 and $6500
Supply concerns
On top of anticipated rising demand there are supply concerns too. China is expected to produce 75000 tons less this year because of COVID-19. Some unions in Chile have also called for reducing output as some workers fall ill with COVID-19.
COVID-19 push and pull
The news yesterday that a relatively low cost steroid is an effective treatment for COVOID-19 is the first really good news there has been concerning treating the virus. It is called dexamethasone. The medium term impact is that this news should be supportive for risk on tones.
