• Copper prices are increasing steadily.
• There is a lot of Copper that is under-utilized.
• The mines are not operating at the most optimal levels of harnessing that copper.
A Financial Analyst has observed that there is a lot of Copper that is under-utilized as mining firms are not operating at the most optimal levels of harnessing the commodity.
Speaking to Money FM News, Webster Matambo noted that Copper prices are increasing steadily trading around US$4 per Pound on the global the market.
Mr. Matambo said there is need for more liquidity in the market to invest in the mining companies that will be able to supply more of Copper, Cobalt, zinc, and other commodities that need a bit more investment.
“Copper prices are increasing steadily, however what we are noticing also the situation with Copper is that there is a lot of Copper that is under-utilized, so the mines are not operating at the most optimal levels of harnessing that copper.”
“We are seeing some prices around US$4 per Pound for the market, so what we need to see is a situation where there is more liquidity in the market to invest in those mining companies that are going to supply more of Copper, Cobalt, zinc, these commodities that need a bit more investment in that sector,” Mr. Matambo stated.
He added that once the investment comes in, Copper prices may go up to highs of about US$6 per Pound.
“So as that investment comes in, the deflection of the paper market will have that invest inflation of the commodity market. So the prices will go up and we could see the highs of about US$6 per Pound,” he added.
Copper futures eased to US$4.05 per pound, above the near-two-month low of US$3.95 touched on February 27th but remaining well below the seven-month high of US$4.25 from January as investors weighed the impact of incoming monetary tightening and uncertain demand from China against supply worries.
