Congo's Copper Concentrate Export Ban Sends Global Prices Soaring
Global copper prices have surged to near six-month highs, closing in on an all-time record set in January. The London Metal Exchange (LME) 3-month copper futures spiked to $14,369 per metric ton in trading on August 6 after reports of a Congolese government order banning exports of copper and cobalt concentrates.
The Democratic Republic of Congo (DRC) aims to foster domestic processing industries and increase the added value of its mineral resources. However, this measure restricts exports at a stage when domestic smelting capacity remains insufficient, intensifying concerns that concentrate supply in the international market will be squeezed in the short term.
The DRC is one of the world's leading producers of copper and cobalt, accounting for more than 10% of global production. If concentrate exports are disrupted, smelters in China and Europe will scramble for raw material procurement.