Rio Tinto (LON: RIO) and Anglo American (LON: AAL) share prices continued doing well this week. Anglo American jumped to 2,220p on Friday, its highest point since December while Rio Tinto soared to 5,400p.

Anglo American vs Rio Tinto

Other mining companies are doing well. Antofagasta has become the best-performing company in the FTSE 100 index this year. Similarly, Glencore share price is about to form a golden cross pattern as the rally intensifies.

The reason for this jump is that industrial metals are in a strong bull run. Copper has jumped to its highest point since 2022. 

In a recent note, an analyst at Bank of America predicted that copper will jump to $3,250 per ton by 2026. He also sees aluminium soaring to $12,000 per ton.

Other industrial metals are surging, Zinc, has soared to $2,750, its highest level since April last year. Iron ore has moved above $100.

Other precious and industrial metals have continued to do well this year. Gold price has moved to $2,350 per ounce while silver is nearing $30. Platinum and palladium prices are also rising.

This price action is happening as signs emerge that the manufacturing sector is doing well. Data published earlier this month showed that the manufacturing PMI in the US jumped above 50 for the first time since 2022.

A separate report on Friday showed that the manufacturing and industrial sectors in the US expanded in March. China is also showing signs of recovery even as the woes in the housing sector remains.

Meanwhile, analysts have turned bullish on metals and their miners. In a note, analysts at Barclays said that they were extremely bullish on European mining companies. They noted that these companies were highly undervalued and that they would benefit from the sector’s resurgence.

In a separate statement, analysts at Pictet said that they had been buying metals in the past few months. Metals like gold and silver are often seen as good hedges against inflation.

Therefore, Rio Tinto and Anglo American shares are surging because of their role in the mining industry. 

Rio Tinto focuses on most industrial metals, with iron ore being its most important business. Its iron ore business brought in over $32.2 billion in 2023 followed by aluminium, which made $12.3 billion. It also has a big stake in the copper and minerals sector like nickel and lithium.

Anglo American, on the other hand, is also a major player in the mining sector. It made over $3.2 billion in the copper business, $4 billion in the iron ore sector. The company also has a strong market share in the steelmaking coal, PGMs, and diamonds, through its De Beers business.

The post Here’s why the Anglo American, Rio Tinto shares are soaring appeared first on Invezz