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Global copper prices have climbed to their highest level since mid-May, strengthening Zambia’s prospects for higher export earnings and increased foreign exchange inflows amid tightening global supplies and resilient demand.
According to Access Bank Group’s latest market commentary, copper on the London Metal Exchange (LME) surged above US$14,000 per tonne as shrinking inventories and strong United States import demand continued to support prices.
The bank said more than 200,000 tonnes of copper were shipped to US ports in July, the largest monthly inflow on record, as traders positioned themselves ahead of an expected decision by US President Donald Trump on refined copper import tariffs.
Read more: Kwacha weakens as dollar demand rises, copper prices strengthen
It said a premium of Comex copper prices over those on the LME also kept shipments to the United States commercially attractive, further tightening global supplies.
Access Bank added that inventories on the London Metal Exchange had fallen to a five-month low as copper was diverted to China, while a widening backwardation signalled growing shortages in the spot market.
The bank said the rally was also being underpinned by strong long-term demand linked to the global energy transition and expanding investment in artificial intelligence infrastructure, both of which require significant volumes of copper.
For Zambia, Africa’s second-largest copper producer, the higher prices are expected to improve export receipts and boost foreign currency inflows, providing support for the country’s external position.
Despite the stronger outlook for copper, the Kwacha came under pressure on Tuesday, weakening by 0.68 percent against the United States dollar to close just below K19.00, according to Bloomberg data.
Access Bank attributed the depreciation to liquidity constraints and sustained demand for hard currency, adding that the local unit’s performance over the coming weeks would depend on foreign exchange demand and supply dynamics, election-related sentiment, corporate foreign currency conversions, mining sector inflows and possible intervention by the Bank of Zambia.
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