Copper price on track for biggest rise in 15 years amid global shortage fears
Metal that underpins the renewable energy industry joins silver and gold as a safe haven asset for investors
TL;DR
- Copper prices have risen over 35% this year, heading for the biggest annual increase in over 15 years.
- The surge is driven by fears of global shortages and copper's importance in the renewable energy industry.
- Copper, gold, and silver are being treated as safe-haven assets by investors hedging against a falling dollar.
- US companies previously hoarded copper due to tariff threats, limiting global supplies.
- Mining accidents have led to mine shutdowns and supply disruptions, such as at Freeport-McMoRan's Grasberg mine in Indonesia.
- China, the largest copper product manufacturer, is prioritizing securing copper supplies, contributing to price increases.
- Jiangxi Copper acquired SolGold for $1.2bn to control its Cascabel mining operation.
- Despite some analysts suggesting sufficient supply, concerns remain about short-term hoarding and long-term demand outstripping supply due to the energy transition.