The copper ‘fever’: the reasons why the demand for this metal has skyrocketed

In early 2024, copper prices began to escalate. This behavior, driven by high demand led this metal to skyrocket above $11,000 per ton in mid-May, which was a historical maximum in its price.

(Read more: The risks of stopping coal exports to Israel)

Several factors lie behind this trend. But, let’s go in parts.

Experts point out that the transition to cleaner energies, the rise of artificial intelligence, the development of new weapons and the increasingly consolidated presence of electric cars have contributed to skyrocketing the demand for copper in the world.

In the case of electric mobility, this is explained by the amount of material required for its operation. To better dimension your role in this industry, A combustion engine uses about 15 kilograms, while an electric one needs 70.

(Read more: Illegal mining: the thirst for gold is destroying the Peruvian Amazon)

(See: The raw material that is ousting copper and gold in prices)

The push that this metal has received is also explained by the measures that China has implemented to stimulate its economy. This considering that the Asian giant is positioned as the largest importer of copper.

However, not everything looks so good for marketing. The lack of investment in the mining of base metals could accentuate the problems that exist around the scarcity of this raw material.

According to data from the consulting firm McKinsey, it estimates that annual demand for copper could increase by six million tons between now and 2031. However, the start-up of new mining companies may take a little more than ten years.

(More news: CEO of Freeport, a mining giant that arrives in Colombia, says it is looking to expand production)

BRIEFCASE