Copper Hits All-Time High as Supply Deficit and Electrification Fuel Record Run

Copper prices have surged to an all-time high of $14,300 per tonne on the London Metal Exchange, sending shockwaves through the market. According to analysts at Sprott Asset Management, this record run may just be getting started.

Director of ETF Product Management Jacob White points out that the setup has been building for a while now, driven by a fundamental supply deficit. New mine supply is notoriously slow to arrive, with an average timeline of 17.5 years from discovery to first production.

Jefferies and Wood Mackenzie echo this view, citing copper's growing importance in electrification as a key driver of scarcity. They predict that prices will rise in real terms over the next 5-10 years, with LME copper potentially settling at $8 per pound by 2032.