The price of copper on the London Metal Exchange set a new record on Tuesday, driven by limited supply and a surge in demand related to the electrification of various sectors and significant investments in data center construction.
This is reported by Finway
Copper Prices Rise: Main Reasons and Market Impact
Three-month copper futures on the LME rose by 3.1% during trading, reaching $13,387.5 per ton. Since the beginning of 2026, the price of this metal has increased by 6.6%, surpassing $13,000 per ton for the first time on Monday. Experts attribute this trend to a global imbalance between limited supply and a rapid increase in demand, particularly against the backdrop of active electrification in industry and the development of data centers.
“The rise in copper prices above $13,000 per ton is driven by an increasing imbalance between structural supply constraints and accelerated demand growth amid electrification and investments in data centers,” notes ING analyst Eva Manti. “A lack of investment over many years, along with ongoing issues in mining operations, has left the market with little room to maneuver.”
Additional Factors: Strikes and the Role of Copper in Industry
Additional pressure on the market has come from a strike at the Mantoverde copper-gold mine operated by Capstone Copper in northern Chile, which has been ongoing since last week. This has heightened market participants’ concerns about a potential copper shortage globally this year.
Copper is an indispensable material for electrical engineering, pipe manufacturing, and the creation of various alloys, and it is also widely used in the medical field and other areas.
Previously, the information and analytical center Experts Club presented a video dedicated to global copper production and the leading countries producing this important metal.