Copper Prices Soar as Global Supply Chain Contraction Intensifies
Copper prices have surged to new highs on the London Metal Exchange (LME), hitting an intraday record of $14,616 per ton. This marks a significant increase of over 17% year-to-date and 47% in the past 12 months.
The sharp rise is attributed to several factors, including expectations of US copper tariffs and the global 'copper grab' wave, where traders are shipping large quantities of copper to the US to profit from higher prices. Cristián Cifuentes, a senior analyst at Cesco, notes that this rally is driven by tariff-induced metal diversion rather than strong end-user demand.
However, the bigger problem lies on the supply side. Global copper mine production may see its first decline in 10 years due to extreme weather conditions and reduced output from major producers such as Antofagasta and Lundin Mining.