Copper is due for a comeuppance

While copper has been sizzling  the metal is due to fall back to earth in the second half of the year, according to a  BMO Capital Markets report. 

On Friday editor Neils Christensen, correspondent Paul Harris and mining audiences manager Michael McCrae discussed  mining and metal events over the past week on Kitco Roundtable. Special guest was  Sean Roosen, executive chair of Osisko Royalties and director at Osisko Mining. 

On Thursday copper poked its head above the $10,000 a tonne mark on the London Metal Exchange before falling back. The last time copper rose above $10,000 was in February 2011, when it touched a record of $10,190. 

Elevated copper prices in 2021 have resulted in blow out quarters for the copper miners.  

The world's top copper producer, Codelco, said profits soared to $1.63 billion in the first quarter of 2021.  Teck said its profits were 247% higher, thanks to copper.  First Quantum, which had been beating off a Chinese suitor a year ago, said revenues were up 42% and Grupo Mexico, the world's fifth-largest copper miner said on Thursday that its revenues were 40.2% higher.

But watch for prices to start coming down, warns BMO Capital Markets in a study released this week. Policy normalization in China in the second half of this year will see reduce frenzied buying for copper and other commodities.  

Goldman Sachs is bullish on copper long term. It had a study out mid-April calling copper the "new oil" due to energy transition. Goldman pegged copper at $15,000 a tonne over the next four years. 

The Roundtable panel also discussed the Fed's announcement, First Cobalt and Global Sea Mineral Resources' troubled mining robot prototype.