The metal used in industry continued to rise, reaching a record level for the second consecutive day. The price increase is due to limited short-term supply and expectations that the US will impose tariffs on imported refined metal.
On the London Metal Exchange, copper rose for the fourth consecutive day, setting a historical high of $14,617 per ton. For the current year, the price of copper has increased by approximately 17%, driven by a long-term imbalance between limited mine production and growing demand from data centers, renewable energy equipment, and power grids.
The short-term supply constraint was intensified by a significant movement of refined copper towards the US, which was done to secure a higher price given the probability of tariffs being introduced. These flows depleted inventories at LME warehouses, triggering a serious shortage last month and leading to a sharp inverse slope in the futures curve, signaling raw material scarcity.
Furthermore, demand in China, the world's largest consumer of copper, is expected to increase as the market enters its traditional peak production season after a recent downturn. Last week, inventory levels at the Shanghai Futures Exchange fell to their lowest point since 2024.
Jia Zheng, a trading manager at Suzhou Chuangyuan Harmony-Win Capital Management Co., stated that 'copper should easily reach the $15,000 mark.' She added that, based on conversations with clients, orders from State Grid Corp. of China look promising.
Supply concerns are also fueled by operational issues at major copper mining projects, jeopardizing the first annual decline in global mined volume since 2017, unless production recovers in the second half of the year.
As of 11:08 AM Singapore time, three-month copper futures rose by 0.5% to $14,581 per ton on the LME, after previously rising by as much as 0.7%. Meanwhile, zinc increased by 1.1%, and aluminum rose by 0.1%. Iron ore futures advanced by 0.8% to $101.10 per ton in Singapore.