New Delhi, Sep 26: Copper prices are projected to surge to $11,700 per metric tonne as global demand continues to rise while supply faces significant constraints, according to a report on Friday.
The recent price surge followed a mudflow at Freeport-McMoRan’s Grasberg mine in Indonesia, the world’s second-largest copper mine, which led to a temporary 3–4 per cent reduction in anticipated global output equivalent to over 2,50,000 tonnes removed from 2025 production.
MCX copper futures for September expiry reached Rs 950, while London Metal Exchange futures touched approximately $10,300 per metric tonne. Analysts say copper prices have risen nearly 20% this year due to tightening supply and rising demand from the global energy transition, including electrification, electric vehicles, grid upgrades, renewable energy installations, and AI-driven data centers.
On the supply side, challenges such as refining bottlenecks, concentrate shortages, and halted operations at Grasberg have tightened market conditions. Inventories have dropped to multi-year lows, significantly below the five-year average. China’s 5% reduction in refined copper production in early September further tightened supply by roughly 500,000 tonnes.
Freeport-McMoRan declared force majeure on copper shipments and suspended blockcave operations indefinitely. Analysts at Motilal Oswal Financial Services Ltd. note that copper miners are likely to benefit from higher prices, with profits expected to remain elevated in the foreseeable future.