Current copper price–in a Sharp Rising Tend All the Way

Three months have been passed since the beginning of 2025. During these three months, we have experienced and surprised by the continuous rise of the copper price. It has saw a journey from the lowest point of ¥72,780 per ton after New Year’s Day to the recent high of ¥81,810 per ton. In less than 90 days, the increase has reached 9,000 yuan. Tianjin Ruiyuan, which has been engaged in copper products business for more than 20 years, is highly sensitive to the rise and fall of copper prices. The financial department of Tianjin Ruiyuan has also made experienced analyses of this significant increase in copper prices. The main reasons are brought up as follows:

1. Tight relationship between supply & demand
   The recovery of the global economy, especially the rapid development of the emerging markets, has led to a substantial increase in the demand for copper. The mining and production of copper ore have failed to run forward together with the growth in demand, resulting in a tight supply and then a pushing up in the copper price. Especially in industries such as construction, electricity, and automotive manufacturing, where copper is widely used, the growth in demand has directly driven the rise in copper prices.
2. Increased demand for renewable energy transition:
   There is an accelerating trend of investment and transition in renewable energy around the world. The manufacturing of electric vehicles, power grids, wind turbines, etc., all require a large amount of copper. For example, at the COP28 Climate Change Conference, more than 60 countries supported tripling the global renewable energy production by 2030, which has had a significant impact on the demand for copper.
3. The fluctuations of Monetary policy and exchange rate:
   The accommodative monetary policies implemented by major economies have increased capital liquidity. Investors tend to invest their funds in the commodity market, including copper. The depreciation of the US dollar makes copper denominated products in US dollars cheaper for holders of other currencies, stimulating demand.
4. Geopolitical risks:
   The political stability in major copper – producing countries such as Chile and Peru has an important impact on copper prices. An increase in geopolitical risks may lead to disruptions in copper mine production or transportation, reducing supply and pushing up copper prices.
5. Impact of environmental protection policies:
   With the enhancement of global environmental awareness, governments around the world have the higher environmental requirements for the mining industry. The tightening of environmental protection policies may lead to an increase in the production costs of copper mines, affecting supply and prices.

To sum up, the sharp increase in copper prices is the result of the combined action of multiple factors. These factors not only affect the short – term fluctuations of copper prices but may also have a profound impact on the global economy and related industries. Investors and relevant enterprises should pay close attention to these changes to make reasonable decisions. Anyway, as a senior participant in the copper industry for 22 years, Tianjin Ruiyuan is an expert in this field. If you have any needs, please contact Tinajin Ruiyuan with trust. We will provide satisfying solutions to help you save costs.