Analysts expect copper prices to remain high and volatile in the months to come as demand for the red metal is growing.According to Adrian Hammond, lead platinum group metals (PGM) analyst at SBG Securities, demand is especially on the rise in China. “The market at the moment is exceptionally tight and there are supply concerns for the short term. We therefore do see prices rising from here on out.”He said while making mining and mineral predictions for the future was near impossible, there was no doubt that copper-based metals were being favoured over bulks in general. “As a house we like copper, we like platinum, we like rhodium. We are generally favouring metals that are in line with environmental, social and governance (ESG) issues.”But, said Hammond, never before had there been such a f lux in viewpoints given what had happened around the world because of the Covid-19 pandemic. “There is no straight answer for anyone from an investor perspective as it is very difficult at present to take a long-term view. One can maybe have reasonable foresight for the next three years – possibly five at the most – but beyond that there is no consensus conviction call for any metals other than possibly copper.”Covid-19 impacted copper supply and demand significantly, with the metal hitting a four-year low in March last year before rebounding and prices breaking the $7000-per-ton mark.
