The core reason for high copper prices lies in the combined effect of three factors: global imbalance between supply and demand, strengthened financial attributes and increased scarcity as a strategic resource . On the financial level, the weakening of the US dollar and the expectation of tariffs have pushed up investment demand. In terms of commodity attributes, the expansion of the new energy industry has intensified resource consumption, and China's strategic reliance on high-purity copper has further widened the supply gap.
Financial attributes drive up price fluctuations：
The depreciation effect of the US dollar : Copper is priced in US dollars. Under the expectation of the Fed cutting interest rates in 2025, the US dollar continues to weaken, directly boosting the rebound space of copper prices.
Tariff policy Game : The U.S. plan to impose a 25% tariff on imported copper has sparked cross-market arbitrage, with copper inventories in New York COMEX surging 37% in half a year, leading to regional supply distortions and speculative hoarding.
Supply-demand contradiction intensifies structurally.
Contraction of the supply side :
The global copper ore grade has declined. The output growth rate of major production areas such as Chile and Peru in 2025 will be less than 1.4%. Emergencies such as wildfires in Canada and a sharp drop in China's scrap copper imports have exacerbated supply chain vulnerability.
Demand surges :
In the field of new energy: The copper consumption of a single electric vehicle reaches 80 to 100 kilograms, which is four times that of a fuel vehicle. 1GW of wind power requires 2,500 to 6,000 tons of copper. Power infrastructure: China 's grid investment to increase copper consumption by 15% year-on-year in 2025, UHV projects become "copper devouring beasts"
