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| Copper |
London Copper Surges Amid Global Supply Disruptions
Copper prices surged to $13,000 per tonne in London, reflecting market stress from mine outages and trade disruptions. However, New York futures fell by up to 6%, erasing recent gains. Analysts attribute this volatility to geopolitical tensions and speculative US tariffs, which have intensified competition for limited copper supply.
Meanwhile, disruptions at key mines in Indonesia, Chile, Peru, and the Democratic Republic of Congo constrained production. Freeport McMoRan’s Grasberg mine declared force majeure, and Ivanhoe’s Kamoa-Kakula complex experienced flooding. These incidents, coupled with rock blasts at Codelco’s El Teniente, highlight persistent supply vulnerabilities across global copper markets.
Industrial Demand and Long-Term Market Pressure
Copper remains essential for energy transition technologies, electric vehicles, and AI infrastructure. Analysts warn that demand could triple by 2045, intensifying market imbalance. Despite short-term price swings, insufficient new mine capacity and slow permitting exacerbate risks, with potential shortages reaching 19 million tonnes by 2050.
The market treats copper as a barometer of industrial health, and supply disruptions reinforce speculative trading. Governments’ infrastructure spending and industrial investments continue to support elevated prices, even as Chinese demand softens, which accounts for roughly half of global consumption.
ScrapInsight Commentary
Supply disruptions in major copper mines will likely sustain price volatility in 2025. Long-term industrial demand, especially for energy transition, may drive persistent deficits. Recycling and secondary copper could become critical in mitigating future supply shortfalls.
