Copper and Cobalt Prices Soar as Supply Chain Instability Spreads

The rising prices of copper and cobalt are causing concern for Korea's domestic industry. Demand is increasing due to investments in electric vehicles, batteries, and power infrastructure driven by artificial intelligence (AI), while supply instability is spreading due to abnormal weather conditions and export controls from resource-bearing countries.

Copper prices have surged 45.35% from last year's average, reaching $14,455 per ton as of the 6th, while cobalt prices have jumped 56.74%, hitting $53.62 per kg. Choi Jin-young, a researcher at Daishin Securities, explained that mining operations in South America were temporarily suspended due to heavy rain and snow damage to power transmission facilities.

Cobalt prices are also being driven up by the Democratic Republic of Congo's export ban policy and the announcement of an export quota system. Analysts say these measures aim to increase the added value of resources by attracting smelting facilities in the country.

The domestic industry is closely monitoring the impact of rising copper and cobalt prices, which are expected to lead to higher prices of domestic products due to the unit price linkage system. An official from the battery industry explained that product prices with high copper content immediately reflect raw material prices.