Copper Prices Poised to Rise on Tight Supply and Improving Demand

Copper prices are expected to rise due to tight supply and improving demand. According to Sprott Asset Management, global mine copper production is likely to decline for the first time in nearly a decade this year, affected by production disruptions, falling ore grades, and weak output in Chile.

Last week, LME copper opened at $14,502/mt, initially drifted lower to touch a low of $14,480.5/mt, then drifted higher near the end of the session to touch a high of $14,551/mt, and finally closed at $14,563/mt, up 0.62%.

SMM Morning Meeting Summary reported that trading volume reached 21,000 lots, and open interest reached 265,000 lots, an increase of 2,021 lots from the previous trading day, reflecting increased positions by bulls.

Jacob White, head of ETF product management at Sprott Asset Management, noted that copper mine projects take an average of about 17.5 years from discovery to production, highlighting the slow supply response of miners to higher prices.