 |
| Copper Prices |
US Actions and Supply Constraints Drive Copper Prices Surge
Copper prices surged past $13,000/t on the London Metal Exchange due to geopolitical tensions and supply concerns. Financial investors increased purchases of copper as a safe-haven alternative. Meanwhile, shipments to the US rose sharply, supporting an existing bull run. As a result, copper markets remain sensitive to global political and trade developments.
Chinese Production Cuts and Global Supply Risks
Chinese smelters plan at least a 10% reduction in utilisation rates, tightening refined copper availability. In contrast, LME warehouse stocks are concentrated in China and Russia, limiting deliverable supply to Comex. Therefore, supply shortfalls and logistical constraints continue to underpin copper prices surge despite stable consumer demand.
Market Outlook and Investment Implications
Speculation over potential US tariffs and tight concentrate supply drives price volatility. As a result, investor interest in copper remains strong, supporting bullish momentum. Longer-term demand from energy transition projects and AI data centres is expected to reinforce the upward trend. Hence, copper prices surge reflects both short-term geopolitical shocks and long-term structural growth expectations.
ScrapInsight Commentary
Tight refined copper supply and geopolitical uncertainty are driving short-term bullish momentum. Potential tariff policies and Chinese production cuts may sustain elevated prices. Investors and industry stakeholders should monitor global shipments and LME stock movements for market signals.
