Copper futures reached around $6.65 per pound on Monday, marking the fifth consecutive session of increases. This price increase is influenced by signs of strong demand and expectations of a decrease in global supply.
Increased demand from China and positive signs
The Yangshan premium, which is one of the key indicators of copper demand in China, reached $121 per ton last week, the highest level since November 2022. Strong demand in China, as the world's largest consumer of copper, has significantly contributed to this price increase. Additionally, forecasts suggest a sustainable long-term consumption of copper due to data center projects and renewable energy.
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Supply challenges and global impacts
On the supply side, major producers like Chile, Indonesia, and the Democratic Republic of Congo are facing disruptions at several key mines due to operational issues, fatal accidents, and severe storms. These problems have significantly impacted global copper supply and directly affect prices.
Traders are also closely monitoring U.S. copper tariff policies and their potential impacts on global trade flows. Changes in this policy could have significant effects on global markets and prices.
With continued demand increases and supply challenges, it seems that copper prices will remain under upward pressure in the short term. This trend could lead to more investments in areas related to renewable energy and innovative technologies.
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