Chilean Copper Commission, Cochilco expects demand for copper to persist for a short term and give its prices a lift, as indicated in its weekly update. On Friday, copper prices stood at $3.14/lb, a rise of ¢11.2/lb from the prior week, aided by increased manufacturing activity in China and the depreciation of the US$, which has supported overseas trades for many counties. Cochilco states that the market belief that democratic candidate Joe Biden will become the US President deepens the expectations of further currency depreciation.
Further, Biden and his advisors are likely to adopt a far more aggressive strategy for economic revival after the COVID-19 pandemic, compared to the outgoing Trump administration. This, along with a balanced composition of the Senate between Democrats and Republicans, lessens the probability of a tax hike. Together, it could have an impact on copper consumption and reduce refined copper inventories further, which are already on a decline with three major metal exchanges in the world.