Copper tops $10k per tonne for first time in 2 years amid soaring demand, tight supplies

Copper prices soared above the $10,000 mark per tonne on Friday, the first time in two years, driven by high global demand and constrained supply chains.

Copper hits key milestone on LME

In early morning trading on the London Metal Exchange, copper prices breached the significant $10,000 per tonne level, a peak not seen since April 2022.

The price momentarily touched $10,028 before slightly retracting to $9,992.50 per tonne.

BHP’s takeover bid for Anglo American shakes up the market

The rally in copper prices comes amid major industry movements, including BHP’s recent $38.8 billion takeover bid for British mining company Anglo American on Thursday.

This bid, aimed at creating the world’s largest listed copper producer, has put additional focus on the metal’s strategic importance.

However, Anglo American has rejected the bid, labeling it as “highly unattractive” and “opportunistic.”

Rising demand linked to renewable energy transition

The current surge in demand for copper is largely fueled by its critical role in the renewable energy sector, including uses in electric vehicles, solar panels, and wind turbines.

This demand boom is placing further pressure on copper supplies, already strained by various global factors.

Additional pressures from strikes and geopolitical tensions

Copper prices are also facing upward pressures from a combination of labor strikes, geopolitical tensions, and stricter regulations.

These factors are contributing to the tight supply situation and are reminiscent of the conditions that led to the record high of $10,845 per tonne back in March 2022 following Russia’s invasion of Ukraine.

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