Copper Hits New Highs, Trade Deal Hopes Shift Concerns To Supply Issues

Benzinga

Copper hit a record $11,140 per ton on renewed optimism for a U.S.-China trade deal and persistent supply shortages. Production challenges at Codelco and expansion by China’s CMOC Group highlight global supply imbalances. Analysts say underinvestment and mine disruptions could sustain the rally through 2025.

Transcript

00:00It's Benzinga bringing Wall Street to Main Street.

00:02Copper surged to a new record on Wednesday on hopes of a U.S.-China deal with three-month

00:06futures on London markets exceeding $11,140 per ton, according to Benzinga.

00:1225% year-to-date rally so far has been the best performance for the medal since 2017.

00:17Copper prices are rising on optimism over a potential U.S.-China trade deal and concerns

00:21about supply tightness outside the U.S. According to CRU Group's Craig Lang, copper supply remains

00:26under pressure, as major producers face setbacks from lower grades, water limits, and reduced

00:30output, while Kotoko weighs profit over production and may mothball older sites.

00:36China's CMOC Group is expanding its KFM mine in the Congo to boost future supply.

00:42The chart starting of 100% tariffs on Chinese imports earlier in the year triggered U.S.

00:46copper stockpiling and global market mispricing, which eased once commodity-grade copper was

00:51exempted.

00:52The trade deal hopes renewed.

00:53Investors are now focused on long-term supply challenges like underinvestment and unreliable

00:58mines that could sustain copper's rally.

01:00For all things money, visit Benzinga.com.

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