Copper prices on Tuesday for the first time exceeded the mark of $ 12 thousand per ton.
Quotes of three-month futures for copper on the London Metal Exchange (LME) by 13:44 Q1 rose by 1% to $ 12,059 per ton.
Since the beginning of the year, the metal has risen in price by about 37%. If the same dynamics will be shown at the end of the year, it will be the strongest rise since 2009.
Quotes are supported by serious problems at some deposits and changes in trade flows due to the tariff policy of U.S. President Donald Trump.
The possibility of Trump’s introduction of duties on copper is one of the main factors in the growth of prices for this metal. The states have significantly increased its imports, forcing production companies from other countries into a highly competitive battle for the metal.
Outages at major mines in Chile and Peru and delays in Indonesia have reduced production by 8-12%, and the slow pace of new project development is limiting the global supply of concentrate.
In addition, Chinese smelters have agreed to the lowest-ever zero treatment and refining tariffs for 2026, which only emphasizes supply constraints and gives miners an additional bargaining advantage.
Meanwhile, demand in the electric vehicle, data center and power grid segments remains strong, with Goldman Sachs forecasting more than 60% growth in copper demand between now and 2030, Trading Economics wrote.
Earlier, the Experts Club information and analytical center released a video on global copper production and leading producing countries – https://youtube.com/shorts/_h8iU50z8C0?si=a-XkgGEfeUxseQNa.
World food prices fell 9.6% in April from a year earlier, the FAO (UN food and agriculture organization) said in its monthly report on Friday.
Meanwhile, March’s price index was revised up 0.3 percent, the document noted on its website.
The cereal price index rose 0.3 percent in April from March after three months of declines. World wheat export prices stabilized in April as strong competition among major exporters offset concerns about unfavorable crop conditions in several countries in the European Union, Russia and the United States. Export prices for corn were boosted by strong demand amid growing logistical disruptions from infrastructure damage in Ukraine and production concerns in Brazil ahead of the main harvest.
The vegetable oil price index also rose 0.3% year-on-year in March to a 13-month high. FAO indicated that higher quotations for sunflower and rapeseed oil offset a slight decline in palm and soybean oil prices.
The Meat Price Index increased 1.6 percent in April from the previous month as international poultry, beef and lamb prices rose. World pork prices declined slightly, reflecting sluggish domestic demand in Western Europe and persistently sluggish demand from leading importers, especially China.
The sugar price index declined 4.4% from March and was 14.7% below the April 2023 level. The decline was attributed to an improved global supply outlook, particularly due to higher than previously expected production in India and Thailand, as well as improved weather conditions in Brazil.
The Dairy Price Index declined 0.3% after six months of gains, driven by sluggish spot import demand for skim milk powder and lower global cheese prices due to a stronger U.S. dollar. In contrast, world butter prices rose on the back of robust import demand.
