Copper prices rose to a record high. The metal is trading at double its 2000-2020 average price, with investors betting on a demand-driven boom.
Undeniably, the market is red hot. At the London Metal Exchange, benchmark copper prices rose to a nominal high above today $11,000 per tonwhich therefore means 11 dollars a kilosurpassing the previous peak of $10,850 set in 2022. In New York, prices climbed even higher as a variety of financial, more than fundamental, conditions engulfed the market.
With mining companies announcing sharp drops in their supply forecasts for the year and inventories at low levels, the conditions are ripe for even higher prices. Goldman Sachs Group Inc. recently told investors that “copper’s time is now“.
Copper can rise to $12,000 a tonPerhaps $13,000? Perhaps. In 2008, during the China-led commodities boom, the metal briefly traded above $8,000. In real terms, adjusted for inflation, it is expected to rise to nearly $14,000 a ton in today’s money to match that peak.
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