Copper price nears one-month high on optimism over China's economy


Copper price nears one-month high on optimism over China

Published 9 January 2025 The copper price has been on the rise in 2025, reaching a three-week high amid robust demand in China, given Beijing's ongoing stimulus measures. However, Trump's tariffs are expected to cap the uptrend later in the year. Copper prices have had a strong start in 2025, rising more than 6% in the first six trading days of the year. Copper futures prices at COMEX climbed for the fourth consecutive trading day to $4.29 (€4.17)per pound at 5:10 am ECT on Thursday, the highest level since 11 December. Copper's price rally suggests that the base metal continues to face ongoing supply constraints and increasing demand this year. The global industrial shift towards renewable energy, electric vehicles, and the burgeoning AI sector has collectively bolstered copper's demand outlook. However, underinvestment in copper mining may remain an issue for years to come. S&P Global's report shows that global copper mine production will peak at 23.5 million tons between 2025 and 2026 before declining at a pace of 2.3% per year through 2035. In the near-term, China's stimulus hopes and its refinery overcapacity could be primary drivers of copper's price. China's stimulus hopes fuel positive demand outlooks Copper saw a volatile year in 2024. The base metal's price surged in the first five months to reach a record of above $5 (€4.9) per pound in May before undergoing a sharp pullback until August, during which China played a critical role in driving the volatility. China is the world's largest copper supplier and consumer, as well as a key player in driving global green energy transitions.