FXStreet reports that strategists at ABN Amro see that the global recovery is becoming more and more widely supported and these conditions will bring support for metal prices in 2021. 

“The copper price continues to break record after record. The list of reasons for the higher prices is long. The weaker dollar, a shortage of copper, the global economic recovery, the start of widescale vaccinations, the continued growth of Chinese industrial activity and supply constraints from Chilean mines. This provides a lot of confidence. As a result, total long positions are high, but this also brings a downside price risk because it increases the likelihood of profit-taking by speculators. The copper price will rise further in 2021 but in a lower gear.” 

“The order books for aluminium sheets are solidly filled for the first quarter of 2021. This will keeps prices relatively high in 2021. Demand for steel-intensive consumer goods, such as cars and white goods, is currently strong in several markets. This year, steel prices will remain relatively high. Demand for good quality iron ore remains high worldwide. Price risks come mainly from the supply side. In any case, the current high price is an invitation for mining companies to produce more.”