The pandemic-stricken year undoubtedly pulled base metals from the pedestal.
Copper and nickel prices are on a steady high. This comes in recent months amid strong Chinese market demand and the rise of electric vehicle manufacturing.
For the record, the strong import from China currently holds a year-to-date figure at 5.6 million tonnes.
This is already a record-high figure even when the year has enough time left for a greater run.
In another area, aluminum is also receiving much patronage from the robust economic rebound of the country.
The East Asian country’s manufacturing and industrial activity indicators recorded successive growth in the past months. Other developing countries, in comparison, continue to falter in the field.
The two commodities are in for further rally as Biden takes on the presidency seat. Growing hopes for the Covif-19 vaccine also have a large contribution to this.
In the first quarter, both have experienced significant downturns only to experience an unprecedented rise in the coming months.
The risk-on sentiment in the global markets yet again ignites with the news of the Covid-19 vaccine.
The pharmaceutical company Pfizer together with its partner BioNTech are the first to reignite the fire after announcing the 90% efficacy of its inoculation.
Joining the bandwagon is Moderna which opened the week with optimistic news of the 94.5% efficacy of its shot, combined with an easier handling process.
The news is quick to support the price of precious metals.
Currently, copper breached another set of multi-year highs in the Comex market.
Nickel is on the Rise
The price of the malleable metal’s futures contract for December delivery is at $3.2626 per pound or $7,193 per tonne after gaining an impressive 2.7%.
The commodity is one of the most sought-after assets in the market with more than $8.3 billion worth traded in New York this mid-afternoon.
Following the trail of its counterpart, nickel is also in a ride that seems to only go up.
The imperatives of the metal are highlighted by Elon Musk, the owner of the revolutionary EV manufacturer Tesla.
He urged mining companies to focus more on sourcing the base metal as the market is projected to shift towards green energy, thereby to electric-powered vehicles in the coming days.
For the record, one of the most prominent components of an electric-powered automobile is nickel.
Tesla also announced its plan to move away from the costly cobalt and leverage the lustrous metal to create more affordable units.
Nickel’s October peak came to be the highest in almost a year.
