FX.co ★ Copper Hits Fresh All Time-High

Copper futures surged to approximately $6.10 per pound on Wednesday, reaching unprecedented levels as concerns about supply constraints continued to influence market sentiment. The possibility of new US tariffs on refined copper has led to a significant increase in stockpiling within the US, thereby reducing availability in other regions. Additionally, major South American copper producers are facing production disruptions due to extreme weather, labor strikes, and political instability, further limiting global supply. In China, copper production is anticipated to remain high in the short term, which could result in occasional price declines. On the demand front, the global transition to clean energy and the rapid expansion of artificial intelligence are contributing to a sustained increase in copper consumption. This is due to electric vehicles requiring up to four times the copper of traditional vehicles, and data centers depending heavily on copper-intensive wiring.