Copper futures surged to above $4.4 per pound in April, the...

Copper futures surged to above $4.4 per pound in April, the highest in nearly two years, as concerns of low supply were met with signs of traction in demand. Satellite data showed that copper smelters in China, the world’s top producer of refined copper, decreased activity levels to act in line with pledges that their output could fall up to 10% this year. The moves mark a response to the low supply of copper ore for Chinese smelters, magnifying the sector’s overcapacity to drive smelting fees to their lowest in years. Among a wave of lower ore supply, Zambia suspended activity in key mines due to power shortages, while Panama’s Cobre mine was shut down and South American mines failed to meet their guidances in 2023. In the meantime, improving demand from China drove imports of unwrought copper to surge by 16% to 474,000 tonnes in March, aligning with strong manufacturing PMIs for the period and suggesting that factories may be gaining some traction following prolonged pessimism.

Copper - Price - Chart - Historical Data - News (tradingeconomics.com)