Copper hits record $6.87 per pound on COMEX
COMEX copper futures hit an all-time high of $6.87 per pound. London Metal Exchange prices reached $14,800 per metric ton. These levels are up 19 percent from the start of the year. The surge reflects a tightening global supply market.
Copper futures on the COMEX exchange reached a record $6.87 per pound this week. This price is approximately 19 percent higher than at the start of the year. On the London Metal Exchange, the price rose to a record $14,800 per metric ton. The U.S. price equates to about $15,141 per ton. This premium reflects U.S. buyers stockpiling supplies ahead of possible import tariffs.
Electrification and artificial intelligence infrastructure are driving long-term demand. Data centers built by major technology companies require significant volumes of copper for electricity distribution. Oroco Resource Corp CEO Charlie Kraier identifies these factors as key demand drivers. The company owns the Santo Tomas copper asset in northwestern Mexico. Production at this site is expected to begin in 2032. The resource contains about 1 billion tons of copper ore with a 20-year operating life.
Supply constraints threaten future availability
Declining ore grades and a lack of major new discoveries limit supply. The industry has reduced capital expenditures. Bringing a new mine online can take 15 to 20 years. Higher interest rates complicate financing for large-scale projects. A shortage of sulfuric acid also affects mine operations. About 50 percent of global sulfur supplies pass through the Strait of Hormuz.
Forecasts predict a significant copper gap
The International Energy Agency forecasts global copper demand could reach 42 million tons per year by 2040. Bernstein Private Wealth Management estimates a potential shortage of up to 12 million tons. S&P Global forecasts a 24 percent gap between demand and supply by 2040. This gap could become significant after 2035. GN auto markets and commodities reports cite these figures in its analysis of copper prices.
Market risks remain present
Charlie Kraier warns that the U.S. abandoning tariffs could lower prices. Restoration of peace in the Middle East might also impact costs. A sharp cooling of interest in AI could reduce demand. Oroco currently uses a long-term copper price of $4 per pound in its financial models. This conservative estimate accounts for potential market volatility.
