How to Trade Copper (COPPER)

The London Metal Exchange (LME) was established in 1877 to provide a marketplace for copper and other metals. This created a global benchmark price and allowed for the hedging of price risks, which became crucial as the world began to wire up for electricity.

The rapid urbanization and industrialization of China led to a 'Commodity Supercycle.' Copper prices rose from ~$0.60/lb in 1999 to over $4.50/lb in 2011 as China became the consumer of over 50% of the world's copper supply.

Copper prices hit record highs of over $10,000 per tonne due to post-pandemic supply chain disruptions and the accelerating global shift toward green energy. Investors began viewing copper as a 'critical mineral' for national security.

The closure of Cobre Panama mine and production downgrades in Chile led to a global supply deficit. Analysts warned that the world is not producing enough copper to meet the needs of the EV transition, driving long-term bullish sentiment.

The expansion of AI data centers, which require significant electrical infrastructure, and the massive growth in grid investment have solidified copper's status as the 'new oil.' Demand is projected to double by 2035 to meet Net Zero goals.