Copper surged toward $4.6 per pound and briefly broke the...

Copper surged toward $4.6 per pound and briefly broke the threshold of $10,000 per tonne for the first time in two years in London, as growing supply worries and bullish long-term demand spurred a fresh round of speculative buying. Persistent issues in copper ore mining threatened inputs for smelters and treatment plants, most recently underscored by the shutdown of Cobre Panama, the world’s largest open-pit copper mine, suspended activity in Zambia due to power shortages, and hampered output in South America due to political protests. Consequently, the lower margins for major smelters in China, the world’s top producer, drove industry groups to plan for a 10% reduction in output for this year. The large costs of committing to new mines drove industry players to attempt M&A activity with rivals instead of starting new projects, recently headlined by BHP’s attempt to buy Anglo American. Meanwhile, copper’s usage in the global efforts of electrification continued to support fund buying.