Supported by the optimism on the positive Covid-19 vaccine development globally, tin and copper prices could potentially rise up to US$22,000 per tonne and US$10,200 per tonne, respectively, a trader said to Bernama.
"Although Covid-19 cases have been increasing worldwide, copper prices were boosted by the progress in the development of a possible vaccine -- the delivery of which could revive the global economy and galvanise metal demand.
"Being the bellwether for the global economic health, copper had hit its highest in two and a half years,” he said.
He said that the positive vaccine news should support industrial metals, moving forward, as it means that economies can begin to open up.
"Surely there will be a resistance level. Fundamentally, it is difficult to predict due to the uncertainties in the United States’ (US) political landscape, and it also depends on the world geopolitical development.
"One thing for sure, billions of people need to be inoculated to ensure that the virus is no longer a threat to vulnerable members of society or poses an existential threat to renewed economic growth,” he added.
Another dealer said that governments around the world must figure out how to wind down their massive stimulus packages.
"In the US, the turbulent four-year presidency of Donald Trump is ending with Joe Biden taking over, and the United Kingdom is facing the real Brexit moment, to name just one more (historical) landmark. It’s for once a genuine turning point,” he noted.
He said that at the moment, copper prices have been on an uptrend for three consecutive days amidst optimism due to the US$1.9 trillion stimulus plan by President-elect Joe Biden.
"Meanwhile, spreads (copper futures) traded in a volatile session last night, with bids on forward spreads Jun 2021 and beyond especially strong,” he added. - Bernama
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