Copper reaches new peak amid supply shortfall

Copper prices have risen to a record level of around $14,617 per ton, driven by a supply shortage caused by tight supplies and expectations of further demand, especially with its increasing use in data centers and renewable energy. The possibility of the United States imposing tariffs on copper imports has led to large quantities being diverted to the US market, draining inventories abroad and resulting in a supply crisis, with spot prices surpassing futures prices. Demand from China, the largest consumer, is expected to continue supporting prices, especially during peak season. Meanwhile, the first decline in global production since 2017 adds pressure to the market, with forecasts suggesting prices could reach $15,000 per ton if supply and demand remain balanced. The growth in copper demand indicates structural shifts in the global economy toward clean energy and artificial intelligence, highlighting the metal’s importance as an indicator of major economic changes.

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