Copper Prices Surge Near Record Highs Amid Trade Deal Hopes and Supply Concerns

Copper Price Surge: Trade Deal and Supply Woes Fuel Rally

Copper prices have surged toward record highs, driven by optimism over a potential US-China trade deal and disruptions at key mines. On Monday, prices on the London Metal Exchange (LME) rose 1.2%, reaching $11,094 per tonne, just shy of the May 2024 record. Copper futures on the COMEX hit $5.247 per lb., equivalent to $11,568 per tonne, also nearing the July record high of $12,330 per tonne.

US-China Trade Deal Sparks Optimism for Copper Demand

The copper price rally coincides with optimism surrounding a potential US-China trade deal. As the world’s two largest economies close in on an agreement, demand for copper—used in construction, electronics, and energy—could rise. Copper is crucial for wiring, batteries, and pipes, all of which are essential to the global energy transition. The easing of trade tensions strengthens the outlook for copper consumption, providing further momentum to the price surge.

Disruptions at Major Copper Mines Contribute to Supply Concerns

At the same time, major supply disruptions at copper mines have intensified concerns. Setbacks at the Kamoa-Kakula complex in the DRC, Chile’s largest underground mine, and Indonesia’s Grasberg mine have lowered production. The International Copper Study Group has reduced its 2025 mine supply growth forecast from 2.3% to 1.4%. As global copper demand rises, these disruptions create additional strain on the supply chain, further pushing prices upward.

SuperMetalPrice Commentary:

Copper prices continue to surge amid trade optimism and supply disruptions. While the US-China trade deal could boost copper demand, ongoing mine setbacks raise concerns about the metal’s availability. With global demand set to rise due to the energy transition, these challenges highlight the need for stable copper supply chains.