Shortage of supply causes copper price to scratch record
The renewed price increase in the past few days was due to the fact that the copper stocks on the London metal exchange had fallen to their lowest level since 1974, as the news agency "Bloomberg" writes. At the same time, the price per ton jumped to over 10,000 US dollars, but stopped short of the previous record. According to the agency, orders from European warehouses rose significantly in October, and stocks in trading centers and private warehouses that compete with London's metal exchange are said to have emptied quickly. Even if this supply shortage is not due to misconduct on the part of the stock exchange, the metal marketplace stated, according to Bloomberg, that it wanted to investigate the incidents and make emergency arrangements. Copper is increasingly used for environmentally friendly technologies The recent surge in demand is easy to explain. According to the "Financial Times", copper is increasingly being used in the field of clean energy technologies, for example in the construction of wind turbines, but also for components in electric cars. According to raw materials consultancy CRU, the use of copper in these "green" technologies could increase to six million tons by 2030, which is 20 percent of current global consumption. "We're at a point where small changes in inventory have an exaggerated effect on price," said Vanessa Davidson, CRE copper expert, according to the paper. "These are very impressive figures that make it clear how positive the green energy transition is having an impact on copper demand."