Commodities: Copper
Copper continues to tread water but we find its resilience in the face of the Omicron strain and a strong $US very encouraging. MM remains bullish the industrial metal looking for around 15% upside which again suggests the Resources Sector should enjoy the start of 2022.
Copper is a metal where demand is set to soar as EV’s become the vehicle of choice which made us ponder if some M&A activity might flow into this area when the dust settles in the nickel space. We remain bullish copper targeting a test of the psychological $US500/lb area as demand should grow as the post COVID economic recovery splutters…
Copper looks very similarly positioned to the ASX having consolidated early gains in Q1 for over 6-months. However the industrial metals resilience in the face of the likes of Delta / Omicron and trade wars remains encouraging and our preferred scenario is another test of the psychological $US500/lb in the months to come i.e. around 15-20% higher.
