Copper, often seen as a barometer for the global economy, is currently experiencing a remarkable price increase. Since the beginning of 2025, the price of copper has risen by over 15 % and is currently trading at around USD 10,780 per tonne. This development is interpreted by analysts as the possible start of a new super cycle in the commodities market.
Drivers of the price increase
Several factors are contributing to this increase:
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Energy transition and electromobility: Copper is a key component in the manufacture of electric vehicles, solar panels and wind turbines. An electric car requires around 80 kg of copper, while a conventional vehicle only uses around 23 kg. The International Energy Agency forecasts that almost half of the world's electricity will come from renewable energies by 2030, which will further drive demand for copper. metal.comviridianmetals.com
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Increase in investments: Institutional investors and hedge funds are increasing their exposure to the copper market in anticipation of further price increases due to the ongoing shortage.
Challenges on the supply side
While demand is increasing, there are several challenges on the supply side:
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Decrease in ore content: Many existing copper mines are experiencing falling ore grades, which is making production more expensive and slowing it down.
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Delays in new projects: The development of new mines requires considerable investment and time. According to UNCTAD, around 80 new mines and investments amounting to 250 billion US dollars could be required by 2030 in order to meet rising demand. UN Trade and Development (UNCTAD)
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Geopolitical risks: In countries such as Peru, Chile and Indonesia, which together account for over 40 % of global copper production, political uncertainty and regulatory changes are leading to production shortfalls and delays in projects. streetwisereports.com
Outlook
Experts predict that the price of copper could rise to up to USD 5.44 per pound by 2026, which corresponds to an increase of around USD 11 % compared to the current price. The combination of rising demand and limited supply could shape the copper market in the coming years.euronews
For investors and companies, this means that copper is playing an increasingly strategic role in the global economy. Developments on the copper market should therefore be monitored closely, as they harbor both opportunities and risks.
Note: This article is based on current market analyses and forecasts. Actual developments may differ from the scenarios presented here.
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