China is the world’s largest consumer of copper, which is often considered something of an economic barometer because the metal is used in many different industries, such as construction, automotive, and telecommunications. Hopes that the US central bank’s umbrella, the Federal Reserve, can slow interest rate hikes amid high inflation are also putting upward pressure on prices.
Throughout 2022, the price of copper fell 14% amid fears of an economic downturn. In March of that year, the price of copper again hit a record high of about $10,900 per ton amid fears that supplies from Russia would be affected by Western sanctions on the war in Ukraine.
Other metals are on the rise
Other commonly used metals such as aluminum, zinc and tin are also increasing in price, as is iron ore. Miners are now concerned about possible metal shortages. Much more investment in new mines would be needed to meet future demand. Copper is also very important for the energy transition and the move to electric driving.
The rising price of copper also makes copper more attractive to thieves. For example, fewer intercity trains were able to run between Amsterdam Central, Utrecht Central and Eindhoven Central stations on Monday morning due to the theft of copper on the tracks.