Copper Prices Extend Uptrend Amid Supply Tightness and Strong Demand

Copper prices continued their upward trajectory in the latest trading session, with futures on the London Metal Exchange (LME) climbing by USD 152 per metric ton to reach USD 11,667. This upward momentum contrasted with a correction observed in domestic Chinese markets, highlighting the continued influence of global supply tightness and sustained demand, particularly from the new energy sector.

Persistent supply constraints remain a key driver, as major copper mines worldwide continue to face operational disruptions due to accidents and declining ore grades. Meanwhile, strong demand is being fueled by rapid growth across key industries, including electric vehicles, AI-driven data center expansion, and global power grid modernization efforts.

For downstream industries such as cable manufacturing, where copper typically constitutes 60–80% of total production costs, the ongoing price rally has significantly intensified cost pressures. This has prompted a number of manufacturers to accelerate efforts toward material substitution, including a shift to aluminum-based alternatives where feasible.

Market analysts suggest that copper prices are likely to remain elevated in the near term, underpinned by structural supply-demand imbalances. However, short-term volatility may persist amid broader macroeconomic policy uncertainties and fluctuating market sentiment.