The copper price currently only knows the upward direction. Possible strikes in Chile and the expected economic recovery are the drivers – but also the transition to a more sustainable mode of production.

Recycling copper scrap will not solve all supply bottlenecks either.

Dhe prospect of a continued economic recovery and a tighter supply are driving the copper price further. On Monday, the price of a ton of the industrial metal rose to its highest level in about ten years. A high of $ 9,650 was recorded on the commodities exchange in London. This is the highest level since mid-2011.

Copper, which is widely used in industry, benefits above all from the prospect of an economic improvement. The major consumer countries, the United States and China, are currently recovering strongly from the severe economic slump in the Corona crisis. In Europe, too, there are increasing signs of economic recovery. In addition, there is the currently weak dollar, which makes the metal traded in the currency cheaper for buyers outside the dollar area.

On the supply side, there are still bottlenecks as a result of the corona pandemic. The raw material experts at Commerzbank speak of persistent problems in the supply situation on the copper market. In Chile, from which about a quarter of the copper wilts, the dockworkers have called on a strike because President Sebastian Pinera wants to block a law that would allow citizens to withdraw money from their pension funds for the third time.

Higher inflation expectations also play a role, as they benefit traditional tangible assets and thus also raw materials and at the same time can also contribute to the fulfillment of expectations.

In the long term, experts see copper as a key raw material in the transition to a more sustainable economy on the upswing. Goldman Sachs and dealer Trafigura expect the price to rise well beyond the record high of $ 10,190 reached in 2011. Because demand will be substantially higher than supply, they expect a sustained rally.