Copper On The Rise

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Today, copper is essential to the energy transition as a "metal of electrification". However, a looming mismatch between current copper supply and future copper demand may present challenges to achieving Net Zero Emissions by 2050.

In our study, The Future of Copper: Will the looming supply gap short-circuit the energy transition?, we examine the key role copper will play in the energy transition and potential obstacles.

Download our free report to get a glimpse into the future of copper.

London Metal Exchange Copper Price

Copper—the "metal of electrification"—is essential to the energy transition. But could a looming mismatch between available copper supply and future copper demand present challenges to the achievement of Net Zero Emissions by 2050 goals?

Nickel and copper prices plummeted in 2022 amid economic gloom and mounting recessionary fears, despite supply tightness and low stockpiles.

Copper price dropped nearly 20% in recent months to $8,397.00 per tonne on June 23 from an April high of $10,451.75/t. Meanwhile, prices for nickel fell nearly 30% to $23,993.50/t on June 23 from $33,875.00/t on April 21.

Year-to-date copper price ($/tonne)

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Asian demand for copper concentrates will likely be supported in the third quarter by healthy margins and an increase in smelter production capacity in China, while clean copper concentrate output is expected to lag consumption, placing downward pressure on the country's treatment and refining charges.

TC/RCs are fees paid to smelters by mines for converting copper concentrate to copper cathode, and falling TCs signal that copper concentrate supply is tight.

Spot Copper Concentrate TC on a Rollercoaster Road in Q2

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Demand for copper will double by 2035, opening up a supply gap that threatens climate goals and poses serious challenges the Net-Zero Emissions by 2050.

This demand growth during the energy transition — a pathway toward transformation of the global economy to Net-Zero Emissions by 2050 — will be particularly pronounced in the United States, China, and Europe. India will also exhibit strong copper demand growth, more from traditional copper applications than from the energy transition.