LME: Copper prices hit 10 month high at $10,845/t

The London Metal Exchange (LME) copper market, which is an international indicator of non-ferrous metal prices, hit a new high on 7 Mar'22. It hit the day's high of $10,845/tonne (t), which was $97.5/t higher than the record high in May'21.

Russia is a producer of copper, aluminum and nickel. Its copper production accounts for about 4% of the world's production. Russia's military invasion of Ukraine led to economic sanctions against Russia, leading to resultant uncertainties about the supply of Russian copper ingots.

In addition, the LME copper inventory remained at a low level of around 70,000 t, which also supported the price rise. It has been decreasing by about 20% since the beginning of the year.

Copper prices edged up thanks to the economic recovery as the Omicron wave subsides. Further, as the decarbonisation drive pushes ahead, demand for renewable energy sources such as solar power and electric vehicles (EVs), is rising fuelling the hike.

However, the three-month futures price has fallen from its high of $10,747.5 in May'21. Since then, prices had been hovering at around $9,000/t levels.

Gold supply hit

Supply concerns over Russian-produced gold intensified against the backdrop of the political tension in Ukraine, leading to higher energy prices on the same day due to soaring crude oil prices. It increased to the highest level, up by 11% since the beginning of the year.

Note: This insight has been published in accordance with an article exchange agreement between SteelMint and Japan Metal Daily.