Copper Is Surging, But It Doesn’t Mean Economy Is Booming
- The metal is up about 45% on the LME from a low in March
- Fundamentals underpin gains, while fears over pandemic loom
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Copper prices are surging, and for once it’s not because the economy is booming.
The metal -- known colloquially as Dr. Copper because its performance is often used to gauge the health of the overall economy -- has surged by a staggering 45% since mid-March. That’s despite the International Monetary Fund downgrading its global forecast and a resurgence of Covid-19 infections forcing governments around the world to re-impose business-crippling lockdowns.