Copper has shown a strong upward trend recently, being one of the best-performing metals due to its remarkable bullish run this year. Surging to $4.5, its highest level in more than two years, the metal has seen a consistent increase, rising over 120% from its low point in March 2020 and experiencing a five-week consecutive upsurge for the first time since 2020.

The surge in copper prices can be attributed to the escalating global manufacturing activities. Reports indicate a significant increase in manufacturing around the world, with the US and China especially witnessing notable growth. In the US, the manufacturing PMI surged to 52 in March after two years, while China's PMI reached 50.8, indicating a robust performance. Furthermore, China's industrial production has seen a 5.3% rise in March, reflecting positive growth in the sector.

Analysts foresee that as the demand for clean energy products intensifies, the recovery witnessed in copper prices is likely to continue, projecting the industry to remain in deficit due to the increasing demand for copper.

In addition to the rising demand, challenges in copper supply contribute to the soaring prices. Recent events, such as the Biden administration rejecting a vital industrial road project in Alaska worth $7.5 billion, have caused significant setbacks in the copper market. Permitting hurdles significantly delay several projects worldwide, such as the cancellation of a $10 billion mine in Panama, costing First Quantum substantial losses and impacting the country's economy. Moreover, existing mines, like Chile's largest mine, face production challenges, with output declining over the years due to aging infrastructure and increasing production costs.

The surge in copper prices is further fueled by the global inflationary pressures that have driven up prices of various commodities like crude oil, gold, silver, and platinum. These commodities serve as hedging tools against inflation, with their prices typically surging during inflationary periods.

Looking ahead, the outlook for copper remains bullish, with the metal displaying a cup and handle pattern, surpassing key resistance levels, and showcasing positive indicators on technical charts. The next target to monitor is at $5, the highest swing observed in March 2022, indicating further potential upside for copper prices in the near future.