In a remarkable turn of events, the price of copper has soared to unprecedented levels, surpassing the $11,000 per ton mark for the first time in history. This surge in value comes amid a prolonged uptrend, fueled by financial investors who have flocked to the market in anticipation of deepening supply shortages.
On the London Metal Exchange, copper futures surged by over 4%, propelling the metal to its historic milestone. Financial institutions, mining complexes, and investment funds have been actively promoting the favorable long-term prospects of the copper market for months.
The influx of investments in recent weeks has put pressure on traders, who have adopted a more cautious approach due to weak demand, particularly in China. Several events in 2024 have bolstered confidence among copper traders, attracting a growing wave of speculative capital.
Scant copper ore supply has spurred discussions on production cutbacks at smelters, with investors betting that increased usage in rapidly growing sectors like electric vehicles, renewable energy, and artificial intelligence will offset resistance from traditional sectors such as construction.
The bullish sentiment surrounding copper reflects optimism about its role in key industries driving technological advancements and sustainability goals.