One day this will take off and we'll all be saying IF only I'd...

One day this will take off and we'll all be saying IF only I'd bought more at 1.3

Copper prices rose above $4.6 per pound, approaching the two-year high of $4.7 amid a softer dollar and increasing supply concerns. Dovish remarks from the Fed, coupled with a weaker-than-expected US jobs report, pressured the greenback and supported the purchasing power for key foreign consumers, lifting base metal prices. This magnified ongoing supply concerns that triggered a sharp rally for copper in the second quarter. Cobre Panama, the world’s largest open-pit copper mine was suspended, while power cuts in Zambia hit key mines. The difficulty in securing supplies and lower margins for smelters in China resulted in a potential cutback of 10% in this year’s output. Finally, high costs of committing to new mines drove industry players to attempt M&A activity with rivals instead of starting new projects, recently headlined by BHP’s attempt to buy Anglo American. On the demand side, high copper demand due to its role in electrification sustained the bullish outlook in the longer term.