Copper price surges to new 8-year high on supply worries

Copper prices continued their rally on Tuesday, reaching the highest level since 2012, on concerns over a market deficit driven by tight supply and strong demand for the industrial metal.

There has also been speculation that more factories in China, the world’s top consumer, have remained open during the Lunar New Year holiday, keeping copper demand elevated during what is normally considered a slow period of industrial activities.

Copper contracts advanced 1.0% to $3.8285 per pound ($8,440.45 per tonne) by 11 a.m. EST in New York. The base metal is on pace for its 11th straight monthly gain and is up more than 8.8% since the beginning of the year.