Copper prices approach historic highs near US$6.55 per pound

Copper prices have reached near-record highs, with the metal trading at approximately US$6.54 per pound on the London Metal Exchange (LME). This price is just cents below the historic peak of US$6.55 recorded recently, marking a massive increase from the US$0.82 per pound seen at the start of the century.

Historical drivers of these price shifts include China’s entry into the World Trade Organization in 2001, which triggered a commodity supercycle by boosting demand for infrastructure and electrical wiring. While the 2008 subprime crisis and a subsequent decade of cooling Chinese demand caused significant price drops, the metal has seen a resurgence.

Recent growth is attributed to the post-pandemic recovery, the global energy transition, and the rise of electromobility, which helped push average annual prices to US$4.23 in 2021.