Copper prices surged toward a record on Monday as optimism over an imminent US-China trade deal added steam to a rally driven by a slew of disruptions at some of the world’s biggest mines.
Prices on the London Metal Exchange rose as much as 1.2% to $11,094 a tonne, just $10 shy of a record reached in May of 2024.
Meanwhile, copper futures on the COMEX traded as high as $5.247 a lb., equivalent to about $11,568 per tonne, which is also not far off the record $12,330 per tonne hit in July.
The rally coincides with signs that the US and China, the world’s two biggest economies, are lining up a trade accord, which would outlook for consumption of the industrial metal at a time of heightened supply concerns.
Copper has rallied by over a quarter this year despite a selloff triggered by US trade policies, as disruptions across major copper mines raised the risks of a supply deficit. In recent months, the Kamoa-Kakula complex in Congo, the world’s largest underground mine in Chile and the large Grasberg mine in Indonesia all suffered incidents.
In light of these mine disruptions, the International Copper Study Group has cut its 2025 mine supply forecasts, with growth now expected to reach 1.4%, down from its previous forecast of 2.3% and actual growth of 2.8% in 2024.
The constraints have brought doubts over producers’ ability to keep up with the growing use of copper in wires, batteries and pipes amid the global energy transition. BHP Group, the world’s biggest miner, sees global demand increasing by around 70% by 2050.
The dollar’s decline this year has added further momentum to metals, making commodities priced in the US currency more attractive.
(With files from Bloomberg)
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Copper prices surged toward a record on Monday as optimism over an imminent US-China trade deal added steam to a rally driven by a slew of disruptions at some of the world’s biggest mines.
Prices on the London Metal Exchange rose as much as 1.2% to $11,094 a tonne, just $10 shy of a record reached in May of 2024.
Meanwhile, copper futures on the COMEX traded as high as $5.247 a lb., equivalent to about $11,568 per tonne, which is also not far off the record $12,330 per tonne hit in July.
The rally coincides with signs that the US and China, the world’s two biggest economies, are lining up a trade accord, which would outlook for consumption of the industrial metal at a time of heightened supply concerns.
Copper has rallied by over a quarter this year despite a selloff triggered by US trade policies, as disruptions across major copper mines raised the risks of a supply deficit. In recent months, the Kamoa-Kakula complex in Congo, the world’s largest underground mine in Chile and the large Grasberg mine in Indonesia all suffered incidents.
In light of these mine disruptions, the International Copper Study Group has cut its 2025 mine supply forecasts, with growth now expected to reach 1.4%, down from its previous forecast of 2.3% and actual growth of 2.8% in 2024.
The constraints have brought doubts over producers’ ability to keep up with the growing use of copper in wires, batteries and pipes amid the global energy transition. BHP Group, the world’s biggest miner, sees global demand increasing by around 70% by 2050.
The dollar’s decline this year has added further momentum to metals, making commodities priced in the US currency more attractive.
(With files from Bloomberg)