Three-month copper prices on the London Metal Exchange (LME) have risen by 12pc in the last month, despite a rapidly deteriorating outlook for global economic growth and industrial metals demand. Copper’s recent rally has ploughed on through April, shrugging off an IMF projection of -3pc GDP growth in 2020, and a collapse in crude oil prices — a market it is usually closely correlated with.
April’s rally followed a 22pc drop between mid-January and late March as the Covid-19 crisis swept westwards from China. That initial downturn compares to a 60pc drop in response to the 2008 financial crisis. Most economists say Covid-19’s economic impact will far outweigh 2008, at least in the near to medium term.
Metal Tiger Plc (LON:MTR) is a London Stock Exchange AIM-listed investing company primarily focused on undervalued natural resource opportunities.