Prices for copper have been fluctuating significantly for several reasons, especially over the last 4 years. Covid-19 being one obvious factor, however Chinese smelters reducing Production have caused prices and demands to soar alongside the ecological transition that is occurring worldwide, with copper being a key material from both sonar panels and electric vehicles. Europe and the US are also expected to see an increase in demand for the material after a period of slow and stagnant economic activity.
Prices in China
- Between 2017- 2020, China was experiencing a stable level of change in prices, ranging from around 47000 to 50000 yan per ton ($6600-$7000), translating to around 23.5 – 25 yuan a pound ($3.31 – $3.53), highlighting healthy prices.
- However, the Chinese experienced a surge in prices with prices reaching as high as 67000+ yuan in 2021. This translates to roughly 33 – 35 yuan a pound ($4.65-$4.94)
- Upcoming regulations could also cause Chinese smelters (who produce half of the worlds mined copper) to continue reducing production by up to 10% throughout 2024, further causing demand and prices to soar.
100% tariffs recently imposed by the US on Chinese Ev’s may prompt retaliatory tariffs from the Chinese Government.
Prices in the USA
- The United States experienced something similar to that of China.
- With stable prices ranging from $2.5 - $3 per pound ($5000-$6000 per ton) between 2017 - 2020, The US then saw a drastic increase from 2021 onwards.
- Prices were then listed at anywhere from $3.75 - $4.65 per pound ($7500 - $9300 per ton)
- Analysts that spoke to CNBC say that these prices show “no signs of slowing down” as demand is only being seen to improve.
Prices in Europe
- As both China and the USA experienced stable prices between 2017-2020 and then saw a rise in 2021 onwards, Europe was no different.
- European prices were as low as 2.18-2.44 Euros per pound between 2019-2020 ($2.37-$2.66)
- The prices then underwent a large increase from 2021 – 2024 with prices ranging from its lowest point of 3.43 Euros per pound to 4.02 Euros per pound at its highest.
- Copper prices in Europe as with the US remain high, with rates only increasing, just like its demand.