Copper tested $10000
A ton of copper tested the 10 thousand dollar level for the first time since 2022.
As expectations increase that the world’s mines will have difficulty meeting the wave of demand from green industries, copper has reached 10 thousand dollars per ton for the first time in the last two years.
Copper rose back to five-figure levels in London after a recovery in global manufacturing activity as well as signs of a mining supply squeeze supported gains in recent months.
BlackRock Inc. said that this premium seen in copper needed the metal to rise further to encourage the opening of new mines. and it also encourages copper bulls like Trafigura Group.
Market players are optimistic about the increase in demand, as millions of tons of new supply will be needed in the coming years for use in electric vehicles, renewable energy and expanding electricity grids, and the construction or expansion of large mines will become more expensive.
With the last rally, copper prices gained 17 percent this year.
On the supply side, copper needs to reach $12,000 a tonne to encourage large-scale investment in new mines and prevent future shortages, according to Olivia Markham, who manages BlackRock World Mining Fund.
Still, some participants point to a mismatch between copper’s bullish form in futures markets and the more cautious outlook in physical trading. Premiums are decreasing, inventories remain relatively high, and spot prices have been at a discount compared to futures for a long time.