On Friday, April 26, copper prices in London reached a 2-year high, testing the $10,000 per tonne level, after BHP Group’s (rejected) offer to take over Anglo American put copper supply issues in the market’s focus, intensifying investment fund purchases of the metal. The three-month copper contract on the LME rose 0.9% at the end of the session, to $9,950.5 per tonne, but during trading, quotes reached $10,033.5 per tonne – the highest since April 2022. In Shanghai, copper rose to record highs.
“Speculation around tight copper supply is pushing prices to new highs as investors remain optimistic about demand from the green energy sector, with BHP Anglo American’s bid reflecting a looming supply crunch,” said ING analyst Eva Manthey.
Copper prices are driven by concerns over concentrate supply, reflected in low spot copper refining and smelting prices in China, said Dan Smith, head of Amalgamated Metal Trading.
“Investors are still active,” said Mr Smith. “It is tempting to be long copper, with some investors adding new long positions for four weeks in a row.” He, however, warned of factors that could push copper prices lower in the coming months. “Firstly, the net speculative position is high relative to historical levels. Secondly, the discount to the LME spot copper price to the three-month contract is widening,” Mr Smith said. It reached $112.66 per tonne, compared with $78.8 a week earlier.
Aluminium rose 0.1% to $2,566.5 a tonne on the LME. Tin fell 1.3% to $32,340 a tonne. Zinc fell 0.1% to $2,843.5 a tonne. Lead rose 0.1% to $2,208.5 a tonne. Nickel was trading at $19,145 a tonne.