Copper prices have hit their highest level in two years after rising nearly 30% in the past three months.
Copper prices rose 2.2% to $4.766 U.S. per pound on May 13, the highest level since April 18, 2022, according to Dow Jones Market Data.
The industrial metal is quickly closing in on its all-time high of $4.9375 U.S. per pound reached on March 4, 2022.
Some analysts are urging caution, warning that copper’s price is now in overbought territory. Copper’s price has risen 28% so far in 2024.
The price of copper has been marching higher on optimism about renewed global economic growth led by the U.S.
Demand for copper, particularly copper wiring, is rising in the automotive sector and among companies developing ArtificialIntelligence (A.I.) models and applications.
At the same time, copper smelters around the world are having trouble keeping up with demand, pressuring supplies and pushing prices higher.
It all adds up to what analysts are calling a “perfect storm” that should continue to push copper prices higher in the near-term.
Some analysts are forecasting a deficit in copper supplies of as much as 300,000 metric tons this year, which would squeeze prices considerably higher in coming months.