Prices of Copper, Nickel and Tin are Climbing, Analysts Say They Can Rise Higher

Industrial metal commodity prices began to move up. In fact, at the beginning of this September, a number of industrial metal commodities set record high prices.

The price of copper on the LME three-month delivery contract, for example, was at US $ 6,710 per tonne on Friday (4/9). This is the highest level since 26 June 2018.

Tin and nickel prices also surged and touched their highest level since 2019 on Wednesday (2/9). At that time, nickel price was at US $ 15,348 per ton, which is the highest level since November 13, 2019. Friday (4/9), nickel price was at US $ 15,293 per ton.

Meanwhile, tin prices were at the highest level since July 8, 2019 on Wednesday (2/9), namely at US $ 18,348 per ton. Friday (4/9) the price of tin was at the level of US $ 18,250 per ton.

Not to forget that aluminum prices also reached their highest level since January 6, 2020 on Tuesday (9/1) at US $ 1,816 per ton. According to Central Capital Futures analyst Wahyu Tribowo Laksono, the increase in copper prices is a good sign for all industrial metal commodities.

This is because any increase in demand for copper will usually raise demand for other industrial metal commodities. According to the Director of TRFX Garuda Berjangka Ibrahim, the increase in industrial commodity prices is a sign of economic recovery.

The economy began to recover due to the injection of stimulus from various central banks around the world.

Price projections

If you look at economic data in several countries, such as China, the United States and several European countries, it can be seen that the economy is moving in a positive trend. The Fed, for example, keeps interest rates at 0% -0.25% until next year.

Meanwhile, the European central bank has committed to budgeting more than 1,000 trillion next year. “This optimism makes commodity prices move in a positive trend,” said Ibrahim, Sunday (6/9).

Fundamentally, each commodity has actually been shaded by positive sentiment. Tin, for example, is benefiting from the current corona virus pandemic.

The reason is, during a pandemic, the need for electronic goods increases due to work from home and lockdowns . Meanwhile, many tin mines have closed or reduced production.

Wahyu said that China is currently looking for new sources of tin supply in line with the decline in production from Myanmar, Peru and Indonesia.

Good news is also surrounding the nickel commodity. Wahyu said nickel supply was decreasing. Even so, demand is still low.

However, he believes that the long-term prospects for nickel are still bright given that the demand for electric vehicles will continue to rise after the pandemic. “This makes room for the nickel price increase in the second half to US $ 16,000-US $ 17,000 per ton open,” said Wahyu.

According to Wahyu, the price of aluminum rose because it was dragged down by the price of oil. The price of oil rose at the end of August to early September, so that the price of aluminum rose.

He estimated that the price of aluminum could reach US $ 1,828 per barrel. Meanwhile, the copper price, according to Ibrahim, could go up to US $ 7,600 per ton. For the price of tin, Wahyu estimates that it could reach US $ 19,000-US $ 21,000 per ton.