Copper Price Trend

Copper Prices (Q1 2022)

Asia

In the first quarter, copper prices varied and increased. At of the conclusion of fourth week of March, the spot copper price was 73,810 RMB/MT, up 0.39% from the start of the week's price of 73,521.67 RMB/MT, and up 12.03% year on year. Copper prices were on a significant upward trend during the quarter. The market was characterized by extreme volatility. The LME proposed a ban on Russian copper entering warehouses, which exacerbated short-term price volatility. Retail sales of passenger automobiles in the narrow sense fell 10.4% year on year to 1.58 million units in March. On the 23rd march, prices decreased slightly to 73,455 RMB/MT.

Europe

The three-month copper contract on the London Metal Exchange (LME) was up 0.1% at 9,981 USD/MT, while the most-traded March copper contract on the Shanghai Futures Exchange was up 0.8% at 71,460 USD/MT (11,276.81 USD). In the near term, a rate rise may put downward pressure on metals, but if global economic growth remains strong, metals demand may not allow prices to remain low for long.

North America

Copper wire prices in the United States have varied between 3,800 USD/MT in 2020 and 9,600 USD/MT in March 2022. Primary metals' prices, like those of other commodities like as oil and gas, have risen considerably since the Covid epidemic. However, the global recovery since then has resulted in high demand for metals in industries such as building, telecommunications infrastructure, and manufacturing.

Copper Prices (Q4 2021)

Asia

In the final quarter of 2021, the manufacturing activities witnessed a drop. The production levels dipped as China observed power crunches in the wake of the ongoing energy crisis in the region. This affected the production of copper in the region which led to rapidly decreasing inventory levels of the commodity as demand surged high. The disruptions in supply due to low inventory levels amidst high demand drove up the prices to close to 10,000 USD/MT rising by 36% since the beginning of the year. China imported approximately 4.06 lakh tonnes of the metal after a supply shortage of five months.

Europe 

In October 2021, the prices in London hit 9135 USD/MT which increased further by the end of the year as supply shortages were reported from Peru.

North America

The prices kept fluctuating above 9000 USD/MT till the year end after hitting record high values in May 2021. High freight costs amidst delays in supply had caused prices to rise while there was hope for recovery in supply among investors.

Latin America

In Latin America, logistic problems were faced while exporting copper to other countries which added on to the woes of supply deficit. A copper production plant in Peru responsible for 2% of the global output had been shut down due to community issues which affected supply logistics. Labour strikes in Chile over wages had also halted operations in several mines in the region which also contributed to the supply shortage situations.

Copper Prices (Q1-Q3 2021)

Asia

The majority of the demand was driven by China, which is responsible for 50% of the global consumption. The demand increased rapidly ahead of the winters which increased the prices globally. The price hit as high as 10,000 USD/MT in 2021.

Europe 

Copper inventories in April had fallen by 10% to 155,100 MT as reported by the registered warehouses of London Metal Exchange. The demand increased as economies expanded and relied on sustainable development and thereby shifting to Electric Vehicles (EVs). As more car companies made EV commitments, the demand surged in the region. In Europe, prices hit 4.54 USD/lb amidst a recovering economy.

North America

The prices surged high as the economies recovered following the pandemic and as the vaccine emerged. They hit 10,700 USD/MT for the first time in ten years in the second quarter of 2021 followed by a fall to 9000 USD/MT in quarter 3.

Latin America

In Chile, the production had been hampered by the protests by mine workers against the President which raised concerns amidst low supplies, driving up the prices. The resurgence of Covid-19 also added on to the production and supply issues in Latin America.

Copper Prices Overview 2020

Asia

The prices rebounded by the end of the year 2020, increasing by almost 18% since October and by 65% since March. The high demand in China, which is the largest consumer of copper in the world, drove up the prices. As the onshore market of China recovered rapidly, the end-user industry witnessed exceptionally high demands in the second half of the year. The price by the year end had increased to 7600 USD/MT after recovering from the low prices of about 4500 USD/MT in the first half of the year due to the pandemic. The US dollar had been weak against the Chinese currency which drove up the inflation for metal. The production in Australia had been affected by the lockdowns.

Europe

The metal’s demand in Europe had fallen by 10% in 2020 in spite of the region being a major consumer of the commodity.

North America

The prices in North America hit the 6800 USD/MT mark in September 2020 rising by more than its price in March 2020 during which the prices fell due to the lockdown affecting the consumption levels in the region. The production had fallen during the first half of the year which reduced the global output by 1%. Production was hampered in Mexico, Canada and US.

Latin America

In Peru, the production had been hit by the lockdown imposed due to the pandemic as well as due to the poor weather conditions which disrupted the mining activities in the region bringing down the output by 20% in the first half of 2020. Chile emerged as one of the largest copper producers, witnessing record high production levels in the first half of the year with a 2.6% increase in production.