Copper Price Plunges in New York After Hitting New High in London

Copper Price Volatility Hits Global Markets

Copper prices surged toward $13,000 per tonne in London on Monday, marking one of the most volatile periods for the metal this year. Early trading gains reached 6.6%, before prices settled around 1.6% higher by mid-afternoon. Meanwhile, New York futures dropped as much as 6%, erasing Friday’s advances while London markets were closed.

Supply disruptions across major mining regions, including Indonesia, the Democratic Republic of Congo, and Chile, have tightened availability. Freeport McMoRan declared force majeure at Grasberg, Indonesia’s second-largest copper mine, and production delays at Ivanhoe’s Kamoa-Kakula and Codelco’s El Teniente further limited output. These incidents have pushed copper toward its biggest annual gain since 2009 despite softening demand in China.

Speculation over potential US tariffs has also fueled price swings, triggering a surge in imports and global competition for copper. Traders continue to treat copper as a barometer of industrial health, with disruptions and tariff risks shaping flows and pricing worldwide.

Long-Term Outlook for Copper Prices and Supply

Analysts warn that long-term copper supply faces mounting strain. BloombergNEF forecasts that energy transition-related copper demand could triple by 2045, potentially pushing the market into deficit by 2026. The combination of slow project delivery, rising costs, and high-demand sectors like renewable energy and AI intensifies the risk of prolonged shortages.

Building new mines faces hurdles including permitting delays and rising capital requirements. Benchmark Minerals notes that nearly all major sectors driving global investment are increasingly copper-intensive. Without substantial investment in new mines and recycling, shortages could reach 19 million tonnes by 2050.

SuperMetalPrice Commentary:

The copper market demonstrates high volatility driven by supply disruptions and policy uncertainty. Investors should monitor mine production risks, geopolitical tensions, and global tariff policies. Strategic planning for long-term copper demand is critical, as industrial and energy transition needs will continue to pressure supply.