Won't be surprised to see new record high in copper, aluminum, says Saxo Bank

It has been a fairly good start for industrial metals in 2023 with copper, aluminum and zinc nearing 7 month highs, supported by weak dollar and China's economic situation. On a monthly basis, copper prices have surged 12 percent and zinc has surged 14 percent but tin has seen a big rally and gained 23 percent. Ole Hansen, Head of Commodity Strategy at Saxo Bank likes copper and aluminum from the supply side perspective and he wouldn’t be surprised to see a new record high in both of these metals.

"I like copper, aluminum from the supply side perspective. I keep a close eye on copper and aluminum," he said.

"I wouldn’t be surprised to see a new record high in both copper and aluminum," Hansen added.

He believes the direction for metals is right. “What we are seeing both for gold and for industrial metals is that, while we believe that the direction is correct, we think that timing may just be little bit off because right now it is mostly just investor buying, getting into the market and following that the hard work begins that is when we need to see the real demand also picks up to justify the price levels that we have achieved over the last months,” he stated.

Philip Newman, MD of Metals Focus and Michael DiRienzo, Executive Director of Silver Institute also shared their insights on the metals rally, precious metals and the factors that will impact metal prices.