Raw materials: platinum and copper at the top, bitter cocoa

This week the tonne of copper peaked at $ 8,350.00, a new high since October 2012.

Copper prices hit a new high in more than eight years this week on the London Metal Exchange (LME), at $ 8,350.00 per tonne, driven by Chinese demand and a declining dollar.

It is indeed necessary to go back to the beginning of October 2012 to find a comparable copper price.

Anna Stablum, analyst at Marex Spectron, highlights producer prices which fell in January in positive territory (0.3%) for the first in 11 months in China, according to figures released Wednesday by the National Bureau of statistics (SNB), as the driving force behind copper purchases and more broadly as a sign of recovery in activity in the country.

The US dollar, which lost value this week against the major currencies, also fueled the rise of the red metal, which has become less expensive for investors with other currencies.

“Copper, used in all areas – wiring, electronics, electric vehicles – has reached its highest level in more than eight years as a wind of optimism blows on demand, encouraged by initiatives around the economy by governments around the world, ”commented Ole S. Hansen of Saxobank.

On the LME, a tonne of copper for delivery in three months traded at $ 8,328.50 Friday at 4:50 p.m. GMT, against $ 7,912.50 the previous Friday at the end of the session.

Platinum record

The price of platinum climbed sharply over the week, reaching its highest level since January 2015 at $ 1,272.10 on Thursday.

The world’s number one platinum refiner, British engineering group Johnson Matthey, estimates demand for the metal will rise: In China, new regulations under consideration on CO2 emissions could force entire fleets of diesel trucks to s ” equip with catalysts.

According to the group’s biannual report on the market published on Wednesday, after 2020 when both demand and supply were weighed down by the COVID-19 pandemic, mines and automobile factories idling, purchases will pick up again faster than production.

“Platinum has had strong bullish fevers recently, which can be explained by the fact that the metal is undervalued compared to palladium and gold,” commented Carsten Fritsch, analyst at Commerzbank.

Gold prices climbed over the week, boosted by fears that inflation would rise in the United States ($ 1,825.26 per ounce at 4:50 p.m. GMT, 5:50 p.m. in Paris, against $ 1,794 , 03 dollars at the end of the session the previous Friday).

Brewed cocoa

Cocoa prices fell over the week in a deleterious climate between the leading producer country, Côte d’Ivoire, and the chocolate multinationals, which are engaged in a real standoff.

The latest development to date, cocoa traders from Côte d’Ivoire denounced Tuesday in Abidjan the monopoly of multinational chocolate companies and demanded a larger share of cocoa marketing contracts, a threat that has not panicked the markets.

“It is absolutely essential that the six multinationals that buy in Côte d’Ivoire through their subsidiaries have the obligation to systematically allocate 20% to 30% of each of their contracts to Ivorian processors and exporters” Fabien told AFP. Guei, spokesperson for the Ivorian traders group (GNI).

These six companies – the Swiss Barry Callebaut, world number one in industrial chocolate, Olam (Singapore), Cargill (United States), Ecom (Switzerland) and the French groups Sucden and Touton – dominate the Ivorian market, which produces 40% of the global cocoa.

In London, a tonne of cocoa for delivery in May was worth £ 1,650.00, compared to £ 1,669.00 at the close last Friday. In New York, a ton for same month delivery was worth $ 2,433.00, compared to $ 2,472.00 seven days earlier.

Leave a Comment

This site uses Akismet to reduce spam. Learn how your comment data is processed.