Copper prices have rallied to just under $12,000 per ton following the Federal Reserve’s rate cut, extending their year-to-date gain to 36%. The surge comes as markets increasingly fear that global supply may struggle to keep pace with accelerating demand, according to Commerzbank commodity analyst Barbara Lambrecht.
Chilean miners ramp up investment plans
“The copper price continues to break new records. After the Fed’s rate cut, it moved sharply higher yesterday and approached $12,000 per ton this morning. Prices are now 36% above where they started the year, driven mainly by concerns that supply cannot keep up with rising demand,” Lambrecht said.
She added that the rally is already influencing supply-side behavior. According to new projections from Chile’s Copper Commission (Cochilco), mining companies in the world’s largest copper-producing nation have significantly raised their investment plans. Nearly $105 billion is expected to be deployed through 2034—an increase of 26% from last year’s forecast for the 2024–2033 period, and the highest investment pipeline since 2015.
The upgraded portfolio includes a major expansion at Escondida, the world’s largest copper mine, along with new concentrate plants at Collahuasi. These projects are aimed at boosting long-term output to meet the tightening global market.
Ready to start trading Forex? Join iXBroker today and kick-start your trading journey now!
