London/New Delhi: Copper prices are holding just below the crucial $11,000 per tonne mark, edging closer to their all-time high amid growing optimism over global industrial demand and tightening supply from major producers.
On the London Metal Exchange (LME), benchmark three-month copper traded around $10,950 per tonne on Friday, buoyed by stronger manufacturing data from China and ongoing supply disruptions in Latin America. Analysts say a break above $11,000 could signal a new rally phase for the red metal, often considered a bellwether for global economic health.
“Copper’s fundamentals remain robust. Demand from electric vehicles, renewable energy, and infrastructure continues to surge, while supply remains constrained,” said Rajiv Menon, a commodities strategist at ICICI Securities. “We could see a retest of the May 2024 record high if sentiment stays bullish.”
The rally comes despite concerns about global economic headwinds and interest rate uncertainty. Key mining regions such as Chile and Peru have reported lower-than-expected production this quarter due to labor disputes and weather-related disruptions, further tightening global inventories.
Traders are also watching China closely — the world’s top consumer of copper — as recent data showed a rebound in industrial activity and state-backed infrastructure investment. Beijing’s latest stimulus package aimed at boosting housing and renewable projects has also contributed to higher copper demand expectations.
Copper futures on the COMEX in the U.S. mirrored the LME trend, trading near $4.95 per pound, reflecting sustained investor confidence. Market participants suggest that if prices close above $11,000, speculative inflows could intensify, potentially pushing the metal into uncharted territory.
Meanwhile, manufacturers are growing wary of potential cost pressures. Rising copper prices could impact sectors like electrical equipment, construction, and EV manufacturing, where the metal is a key component.
Analysts at Goldman Sachs recently reiterated their bullish outlook, projecting copper prices could hit $12,000 per tonne by mid-2026, driven by structural demand linked to decarbonization and global energy transition initiatives