Following the U.S. election, industrial metal prices have increased sharply on the back on an apparent infrastructure-led boost to demand, noted ANZ in a research report. But in copper’s case, the rise in prices of copper had begun quite before the U.S. election. Even if there have not been significant changes in fundamentals, investors are believed to have finally woken up to the fact that the outlook of the market is not as bad as it had been anticipated, stated ANZ.

For almost all of 2016, price of copper has remained in a range of USD4500-5000/t due to worries of a new supply wave and subdued demand in China. But given that inventories have stayed the same and that consumption in China is apparently continuing to surpass expectations, the concern seems to be uncalled for, according to ANZ.

Even if the move in the past month appears to be overdone, prices are unlikely to return to the levels seen before the rally. Current prices continue to place copper at the bottom end of the gains seen in the wider base metals sector this year. Prices of copper are expected to remain above USD5000/t, added ANZ.