Copper has reached a new record on the London Metal Exchange as tight supply, strong demand and uncertainty around possible US tariffs increase pressure on the market.
Three-month LME copper climbed to a record $14,533 per metric tonne, moving above the previous high set in January. The rise reflects a combination of physical supply concerns and stronger buying interest, with traders increasingly focused on whether enough copper will be available to meet future demand.
Copper production cannot be increased quickly because new mines take years to develop. Projects require exploration, permitting, financing and construction before they can begin producing. Even when higher prices encourage companies to invest in new capacity, the additional supply can take a long time to reach the market.
Existing mines also face challenges. Lower ore grades mean some producers have to process more material to produce the same amount of copper, which can increase costs and restrict output growth. Production problems in major mining regions have added to concerns that supply may remain tight in the near term.
At the same time, demand is growing across several industries. Data centres are becoming an important source of copper demand because they require large amounts of electricity and supporting infrastructure. The copper requirement extends beyond the data centres themselves to electricity generation, transmission lines, substations, transformers and grid upgrades.
Electrification is adding further demand. Electric vehicles use copper, while renewable energy projects such as solar and wind installations also require the metal. Battery-storage projects and electricity networks add another layer of demand as countries expand and modernise their power systems.
Defence spending may also increase copper consumption. Aircraft, ships, communications equipment and other military systems rely heavily on electrical components and wiring.
KEFI Gold and Copper plc (LON:KEFI) is an exploration and development company focused on gold and copper deposits in the highly prospective Arabian-Nubian Shield. The Company operates in Ethiopia and Saudi Arabia with projects including Tulu Kapi project, Jibal Qutman EL and Hawiah.
