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| Copper Market |
Supply Constraints and Market Speculation Drive Copper Rally
Copper prices surged to record levels as supply disruptions and US trade uncertainty fuel global market volatility. Benchmark LME three-month copper rose 1.8% to $13,225 per tonne, peaking at $13,387.50. Meanwhile, prices have climbed 6.6% in early 2026 following a 42% gain last year. Supply concerns, strikes in Chile, and delays in Ecuador have intensified market pressure.
Analysts note that AI adoption and energy transition initiatives are increasing long-term copper demand. In contrast, speculative inflows and sentiment may be accelerating the price rally beyond fundamentals. Nevertheless, current supply disruptions validate higher pricing in both short- and mid-term forecasts.
Implications for Scrap and Non-Ferrous Metal Markets
High copper prices incentivize recycling and scrap metal recovery, increasing feedstock flows to secondary markets. As a result, scrap collectors and smelters may benefit from elevated margins. Meanwhile, nickel also rises to a 15-month high above $18,000 per tonne due to Indonesian mine output curbs, signaling broader base metal tightness. Strategic planning in procurement and inventory management becomes crucial for steel and nonferrous producers.
Elevated copper costs may pressure downstream sectors but reinforce the value of recycled materials. Therefore, stakeholders should monitor global supply disruptions, trade policy shifts, and emerging energy technologies influencing long-term metal demand.
ScrapInsight Commentary
Record copper prices highlight ongoing supply constraints and geopolitical risk, reinforcing scrap recovery incentives. Secondary markets may see higher feedstock utilization. Strategic inventory and recycling management will remain key for metal producers navigating volatile pricing.
