The price of copper continues its steady rise, surpassing the $14,000 per ton mark and nearly reaching the historical high recorded earlier this year. This increase is attributed to a series of disruptions in mining operations worldwide, leading to a reduction in the supply of this strategically important metal.
This is reported by Finway
Global Factors Influencing the Copper Market
On the London Metal Exchange, the price of copper reached $14,196.50 per ton during the eighth consecutive session, just shy of the historical record of $14,527.50 set in January this year. Experts cite supply disruptions as the main reason for the price increase, particularly issues with sulfur delivery from the Middle East, which have negatively impacted raw material extraction in African mines. Additionally, disruptions at other major mining sites around the world have only intensified this trend.
Demand for copper remains high, primarily due to China—the largest consumer of the metal. Here, copper is actively used in the development of electrical networks, renewable energy projects, and in the artificial intelligence sector. Despite the challenging supply situation, stable demand supports price dynamics.
“According to Li Xueqi, head of research at Chaos Ternary Futures Co., a multitude of supply issues combined with sustained demand is leading to a noticeable recovery in industrial metal prices as fears regarding the war in the Middle East ease.”
Situation at Chinese Enterprises and Price Dynamics
In China, the raw material shortage at mining enterprises continues to intensify. This is already affecting the production volumes of refined copper. According to data from Beijing Antaike Information Co., in April, refined copper production reached 1.05 million tons, which is 3% less than in March. The decline in volumes is attributed to falling processing prices for concentrates and restrictions on billing, which have led to a reduction in scrap supply as raw material. Analysts from the company note that production may further decrease in May due to scheduled maintenance at metallurgical enterprises.
As of this morning, the price of copper has increased by 0.5% to $14,099 per ton. Thus, one kilogram of the metal costs $14.1.