Copper Prices Soar on Supply Shortage Fears

Copper futures prices have surged this month due to supply shortages, causing related stocks in the domestic market to trend upward. According to the London Metal Exchange (LME), the 3-month copper futures contract closed at $14,215.50 per ton on August 21.

This marks a 3.08% increase for the month and brings prices close to the record high of $14,527.50 recorded last January. The rise in copper futures prices is driven by growing demand coupled with insufficient supply.

Copper is a non-ferrous metal used across all stages of electricity generation, transmission, and consumption, with demand surging recently in AI data centers and the defense sector.

S&P Global projected that global copper demand will surge by 50%, rising from 28 million tons last year to 42 million tons by 2040. Analysts expect the supply shortage to persist for a while due to structural imbalances in global copper supply and demand.