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Copper prices have surged past the US$12,000-per-tonne mark for the first time, underscoring growing strain in the global base metals market amid tightening supply and strong long-term demand.
According to commentary from Access Bank Group, the red metal had gained more than 35 percent so far this year, marking its strongest annual performance since 2009.
“The rally has been driven largely by a wave of supply disruptions at major mines in Indonesia, the Democratic Republic of Congo and Chile, which have significantly constrained global output,” according to the commetary.
Adding to the upward pressure, the threat of potential US import tariffs had triggered aggressive stockpiling in American warehouses, intensifying competition for available supplies worldwide.
Read more: Copper prices experience steady rise on the back of strong global demand, tightened supplies
Beyond short-term supply issues, copper demand continued to be supported by powerful structural trends.
“Rapid electrification, expanding energy infrastructure and the soaring power requirements of artificial intelligence technologies are reinforcing bullish market expectations,” the analysis showed.
Major global banks have warned that the copper market was heading toward its deepest supply deficit in decades, a view that has further bolstered prices.
However, some analysts caution that the sharp price rise may be partly driven by investor positioning rather than immediate market fundamentals.
Even so, forecasts of widening and prolonged supply shortfalls have strengthened expectations that copper prices will remain elevated over the medium term.
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