Copper prices may exceed $12,000 this year

The price of copper is expected to reach $12,000 per tonne this year, according to major trading companies. This prediction comes from companies like Mercuria and Trafigura, as well as hedge fund Frontier Commodities. They believe that growing global demand and the potential for U.S. tariffs are driving prices higher. Copper prices reached a record nearly $11,000 in May 2024. After a decrease late last year, prices increased again in 2025 and were around $10,000 recently. Kostas Bintas from Mercuria indicated that the market is facing tight supplies, further pushing prices up. The U.S. is importing large amounts of copper, which has changed the usual market dynamics that are typically focused on Chinese demand. An estimated 400,000 to 500,000 tonnes of copper are currently on the way to the U.S. Traders are concerned about possible tariffs on copper, which has led to a significant price difference between London and New York markets. Currently, there are 25% tariffs on U.S. aluminum and steel imports, and the copper situation may follow. Demand for copper is also increasing as countries like the U.S. and those in the EU need to upgrade their electricity grids, which requires significant amounts of copper. Despite the optimism, some experts express caution. Graeme Train from Trafigura warned that the global economy remains unstable, making it hard to predict the next steps. However, U.S. buyers are still searching for copper as domestic supplies are slow to increase. Meanwhile, copper stocks in U.S. warehouses are nearly at their highest levels since 2019. Additionally, ICE Futures Europe announced it would introduce futures contracts for key battery metals this year, including lithium and cobalt, to enhance market stability.