London (AFP)

They have never been so expensive: copper, a barometer of the world economy, as well as iron ore reached historic highs on Friday, driven by strong demand, especially in China where activity is picking up after the pandemic.

Copper hit around 9:40 GMT (11:40 in Paris) 10,311.00 dollars per tonne on the London Metal Exchange (LME), breaking its previous record of February 2011, when that of iron ore reached 202.65 dollars, a first according to the benchmark index compiled by S&P Platts since 2008.

In addition to a better global economic outlook, prices are benefiting from a weak dollar.

"The rise in commodity prices shows no sign of abating," say analysts at Deutsche Bank.

The appetite for red metal comes mainly from China, which swallows up half of the planet's production;

iron ore benefits from the strong demand for steel, of which it is an essential component.

After public holidays in the country following May 1, demand rebounded sharply, pushing prices to new record highs.

"China having resumed work, this has allowed iron ore to reach a historic milestone," said Julien Hall, analyst at S&P Global Platts, who also added that "May is considered the high season of the construction".

Heavily used in industry, especially for making electrical circuits, copper is also known to reflect the state of health of the world economy, hence its nickname of Doctor Copper (Dr Copper).

- Tin and palladium wanted -

Prices are also pulled up by a subdued dollar, which has dropped more than 0.5% of its value against a basket of currencies in the past three sessions, making it more attractive to investors with money. other currencies.

This mechanism fueled the rise in most commodities this week.

Thus tin, prized for electronic circuits, automotive components and batteries reached $ 30,280 per tonne on Thursday on the LME, a price not seen since May 2011.

This surge reflects strong demand but also a small market size which amplifies price movements.

The price of palladium on Tuesday touched 3,018.00 dollars per ounce, a first in history, driven by supply problems as demand increases.

A precious metal, palladium is mainly used by the automotive industry to make catalysts.

Its demand is therefore boosted by increasingly stringent anti-pollution standards around the world.

"The further upside potential for palladium should gradually be limited," said Carsten Fritsch, Commerzbank analyst, "as current prices will make auto producers increasingly think of replacing palladium with much cheaper platinum. where technically possible ".

Gold was an "exception" in the world of commodities, according to Carlo Alberto de Casa of Activtrades.

In decline since January 1, the yellow metal nevertheless found Thursday and Friday a price above 1,800 dollars an ounce for the first time since February 25.

© 2021 AFP