Copper Prices Soar Amid Global Shortages and Renewable Energy Demand
In 2025, copper prices surged more than 35%, marking the largest annual increase in over 15 years, driven by concerns over global shortages. By December, prices climbed above $12,000 per tonne as copper plays a critical role in renewable energy projects, power grids, construction, and industrial machinery.
Copper has joined silver and gold as a safe-haven asset. Gold prices exceeded $4,400 per ounce, increasing by over 70% since January. Short-term hoarding in the US and China, combined with long-term demand from the energy transition, may outpace supply amid ongoing mining disruptions.
China, the largest manufacturer of copper products, is prioritizing the securing of supplies, adding further pressure on prices. Earlier in the year, the US threatened tariffs on copper imports, which led to a rush to buy; although tariffs were later suspended, hoarding continued.
In corporate developments, Jiangxi Copper, a state-owned miner, agreed to acquire all shares of SolGold for $1.2 billion, gaining control of the Cascabel operation in Ecuador. Despite these market pressures, Goldman Sachs analysts believe copper prices are likely to stabilize, noting that there is currently enough copper in circulation to meet global demand.
However, mine disruptions, including at Freeport-McMoRan's Grasberg mine in Indonesia following a fatal mudslide, have constrained the supply further.
