Copper prices registered another record as the week drew to a close after fresh orders for the metal flooding in from Japan and Taiwan caused a large wave of withdrawals from warehouses in a rush that was last witnessed on the London Metal Exchange back in 2013.
As Wednesday trading ended, the red metal had risen in price by 2.4% on the LME, going past $11,400 a ton and surpassing an earlier record that the metal had set two days prior.
Thus far in the year, copper prices have rallied 30%, with the bulk of those gains coming in the latter part of the year. This surge has largely been driven by concerns about potential U.S. import tariffs and the disruptions to major production operations in Indonesia and Chile.
Copper is needed to make electric vehicles and expand grids in the push to transition away from fossil fuels. Trump’s threats to institute tariffs on this metal have caused traders to frontload supplies into the U.S. and this has led to shortages in other key markets. Comex prices have risen as a result of this frontloading, and this has had an attendant effect of pushing prices upwards in other markets.
Despite the tariff environment, indicators of demand have increasingly taken on a positive outlook in the wake of healthy economic performance and forecasts as economies around the world seem to have taken in stride the different uncertainties that had initially clouded prospects.
Copper’s widespread use across numerous industries, such as construction, electronics and electrification has made this metal to be regarded as a key barometer of the global economy. When demand for the metal contracts, analysts regard this as a sign that the global economy is struggling.
Supply-side factors like the mine closures in Indonesia and Chile due to disruptions resulting from accidents have also constrained the physical availability of the metal, boosting prices. Analysts are forecasting a larger deficit in 2026, and these forecasts have led traders to accumulate more stocks to counter any shortages that could occur. As a result, stocks at major exchanges have contracted and driven up prices.
Scott Crooks, a metals analyst at CODELCO, the copper giant owned by the government in Chile, says macroeconomic factors will play the biggest role in determining the direction of copper prices going forward. He singles out policies and tweets from major decision makers in different countries as factors that the market will immediately react to.
Players in the copper industry, such as Torr Metals Inc. (TSX.V: TMET), will be keeping an eye on the different drivers of the market in order to adjust their strategies in light of any significant developments.
NOTE TO INVESTORS: The latest news and updates relating to Torr Metals Inc. (TSX.V: TMET) are available in the company’s newsroom at https://ibn.fm/TMET
About Rocks & Stocks
Rocks & Stocks (“R&S”) is a specialized communications platform delivering deep insights into the mining industry. It is one of 75+ brands within the Dynamic Brand Portfolio @ IBN that delivers: (1) access to a vast network of wire solutions via InvestorWire to efficiently and effectively reach a myriad of target markets, demographics and diverse industries; (2) article and editorial syndication to 5,000+ outlets; (3) enhanced press release enhancement to ensure maximum impact; (4) social media distribution via IBN to millions of social media followers; and (5) a full array of tailored corporate communications solutions. With broad reach and a seasoned team of contributing journalists and writers, R&S is uniquely positioned to best serve private and public companies that want to reach a wide audience of investors, influencers, consumers, journalists and the general public. By cutting through the overload of information in today’s market, R&S brings its clients unparalleled recognition and brand awareness.
R&S is where breaking news, insightful content and actionable information converge.
To receive SMS alerts from Rocks & Stocks, text “Rocks” to 888-902-4192 (U.S. Mobile Phones Only)
For more information, please visit https://RocksAndStocks.news
Please see full terms of use and disclaimers on the Rocks & Stocks website applicable to all content provided by R&S, wherever published or re-published: https://RocksAndStocks.news/Disclaimer
Rocks & Stocks
Los Angeles, CA
RocksAndStocks.news
310.299.1717 Office
[email protected]
Rocks & Stocks is powered by IBN
