Quick overview

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Copper continued to rise above $14,000 per ton, as supply risks increased due to mine disruptions edging closer to a record high set earlier this year. On the London Metal Exchange, the red metal surged for an eighth session to reach $14,196.50 per ton, which was near an all-time high of $14,527.50 in January.

A shortage of sulfur from the Middle East has put some African mines’ production prospects in jeopardy, exacerbating already-existing disruptions at other significant locations worldwide. However, China, the world’s largest consumer, is largely responsible for the resilient demand for copper, which has seen strong consumption across the power grid, renewable energy, and artificial intelligence sectors.

According to Li Xuezhi, head of research at Chaos Ternary Futures Co., industrial metals are recovering significantly as concerns over the Iran war ease, driven by supply problems and strong demand.

Copper futures on New York’s Comex reached a record $6.69 per pound in anticipation of US tariffs on refined metal imports, raising their premium to LME copper above $500 per ton. The effect of the possible duties is to draw refined copper into the United States while depleting supplies in other countries.

The US Commerce Secretary is expected to provide an updated report on the domestic copper market by June 30 as part of a broader initiative to boost supplies of a metal necessary to expand electrification globally.

Meanwhile, growing shortages of raw materials at mines have started to affect China’s production of refined metal. Beijing Antaike Information Co. claims that… April’s output of refined copper was 1.05 million tons, a 3% decrease from March, as scrap used as feedstock was constrained by restrictions, and concentrate treatment costs continued to decline.