Copper prices have surged, driven by a combination of tight global supply and surging demand.
Supply Side: Copper mine supply is affected by numerous factors, such as mine strikes, extreme weather, and geopolitical conflicts. Frequent labor disputes in major copper-producing countries in South America have further exacerbated supply pressures, leading to a global copper shortage and historically low inventory levels.
In May 2025, a mine tremor occurred at the Kamoa-Kakula copper mine in the Democratic Republic of Congo, resulting in a downward revision of production forecasts for this fourth-largest copper mine in the world from 520,000-580,000 tons to 370,000-420,000 tons;
In July 2025, a mine collapse due to an earthquake at the El Teniente copper mine in Chile is expected to reduce production by 300,000 tons, approximately 11% lower than previously expected;
In September 2025, a mudslide struck the Grasberg copper mine in Indonesia, the world's second-largest copper mine, forcing a complete shutdown;
Demand Side: Demand, particularly from the new energy industry and electric vehicles, is growing rapidly, leading to a surge in copper consumption. It's worth noting that each electric vehicle uses 2-3 times the amount of copper as a traditional gasoline-powered car, further driving up copper demand.
On March 10, UN Secretary-General's spokesperson Dujarric pointed out that if the Strait of Hormuz were closed, global energy and food markets would be impacted.
Latest data released by China's General Administration of Customs on November 7 showed that in the first 10 months of this year, China's goods trade maintained a steady growth trend, with total import and export values increasing by 3.6% year-on-year.
The Closure of the Strait of Hormuz Would Impact Global Energy and Food Markets
China's Import and Export Data
Latest Progress of China-Europe Freight Trains
