Why Copper prices are soaring?

[Arisha]

Copper is often associated with the copper pots used by our grandparents. However, in recent years, the use of copper across multiple sectors has expanded significantly. With supply struggling to keep pace with rising demand and several global developments, copper prices are now soaring.

Copper may be cheaper than gold and silver, but in 2025 alone, prices in the international market have risen by nearly 60 percent compared with levels seen over the past fifteen years. According to a Bloomberg report, the price of copper on the London Metal Exchange has crossed a record high of over Rs. 11 lakh per tonne. On the Multi Commodity Exchange of India (MCX), copper prices have also risen sharply, increasing by more than Rs. 1,300 per kg from last year's level of around Rs. 793 per kg.

Analysts attribute this surge to global economic growth, strong consumption from China, and changes in production and supply-demand dynamics. There is also growing belief that copper prices could rise further, driven by the expanding role of renewable energy and new-age technologies.

Reduced production
Mining disruptions and supply constraints are among the primary reasons behind the rise in copper prices. Operations at the Grasberg mine, one of the world's largest copper mines located in Indonesia, have been affected by operational issues. Meanwhile, an earthquake last year caused tunnel collapses at El Teniente in Chile, another major global copper producer. Mines such as Antamina and Las Bambas in Peru have also faced disruptions due to local tensions, impacting overall supply.

As shortages persist, the United States has increased copper imports from multiple countries. At the same time, global uncertainties, including US-China tensions, geopolitical frictions involving Russia, the Ukraine war, and conflicts in the Middle East, have pushed investors toward metals as a relatively safe investment option. All these factors are collectively giving wings to copper prices.

There is hardly any industry that does not rely on copper. Sustained demand for copper is closely linked to industrial growth and, in turn, overall economic development. Copper possesses unique properties such as high thermal conductivity, ductility, and resistance to corrosion. As a result, it is widely used in electrical wiring, cables, plumbing, radiators, motors, electrical and electronic equipment, as well as in the construction and transportation sectors. Copper is present in nearly every electronic device, including mobile phones, earphones, and chargers, and plays a critical role in energy transmission for audio and video systems.

With many countries, including India, committing to lower carbon emissions, demand for copper has increased further. Copper is essential for solar panels, wind turbines, electric vehicles, EV batteries, and 5G infrastructure. It is also a critical input for AI semiconductors, data centers, and robotics. Currently, global copper demand stands at around 28 million tonnes per year and is projected to reach nearly 42 million tonnes by 2040. A report by S&P Global warns that without a significant increase in production, the world could face a copper shortage exceeding 25 percent of current demand.

Imports are the basis
Copper also holds a special place in Indian traditional practices, with beliefs that its natural properties help eliminate harmful bacteria and boost immunity. This has led to renewed use of copper bottles and utensils. However, India has relatively low copper reserves. The country accounts for only about two percent of global copper production.

Although copper deposits have been identified across 14 states, mining activity remains limited. Major mines are located in Rajasthan, Jharkhand, and Madhya Pradesh, while smaller reserves exist in Andhra Pradesh, Karnataka, Tamil Nadu, and Sikkim. To avoid future shortages, it is essential for India to increase domestic production while ensuring uninterrupted import supplies.

[saad]

Wow, copper really went from being the stuff in grandma's pots to the VIP guest at the global economy party! It's wild to think that something we use daily in utensils, chains and wires is now trading like a superstar metal.

The mining disruptions sound like the plot of a Netflix drama: earthquakes, tunnel collapses, local tensions... no wonder prices are climbing. Honestly, at this rate, I wouldn't be surprised if people start locking up their copper water bottles like family heirlooms.

India definitely has some catching up to do on production, but hey, at least we've still got the tradition of sipping water from copper bottles. Who knew grandma was ahead of the curve all along?