Copper Prices Hit Record $14,533/Metric Ton Amid Supply Shortages and Demand Surge
· Business · Economic Times, ABC News (AU)
Copper prices reached an all-time high of $14,533 per metric ton on the London Metal Exchange, surpassing the previous peak of $14,527.50 set in January. The rally is driven by tight mine supply, a weaker US dollar, and strong demand from electrification, artificial intelligence, and data centres. Analysts like Morgan Stanley now expect global copper mine supply to either stagnate or decline this year, marking the first annual drop since 2017. Chile, the world’s top producer, reported its weakest second-quarter output in at least 19 years, cutting its full-year production forecast by 2.6%. Supply constraints are further exacerbated by sulfuric acid shortages, with nearly half of the world’s seaborne sulfur supply coming from the Middle East, where disruptions around the Strait of Hormuz have tightened availability.
Why it matters
Higher copper prices directly impact industries reliant on the metal, including construction, electronics, and renewable energy, raising costs for manufacturers and consumers. For India, this could translate to higher prices for copper-dependent sectors like electrical wiring, solar panels, and infrastructure projects, affecting both businesses and end-users. The global supply crunch also signals potential inflationary pressures in commodity markets, influencing broader economic policies.
Read the original report — Economic Times
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