Copper in a cross storm between the boom of energy transformation and commercial war

An economic report expected that a group of interlocking factors will restore basic commodity markets, especially copper, in the coming years.
The report said: Among the factors: the rise in the demand for the energy needed for cooling and data centers, and the shift towards clean energy sources, as well as efforts to alleviate the effects of climate change.

Huge investments

According to the report, governments and companies around the world are currently witnessing huge investments in the infrastructure of renewable energy, electric vehicles, and highly efficient technologies in energy use, which increases the demand for the basic minerals of this transformation.
He explained that among the minerals: copper, which is an essential element in electricity and electric vehicles and energy storage in batteries.
He added that among the minerals: aluminum, as it is widely used in light transportation and solar panel structures.
He pointed out that minerals include: lithium, cobalt and nickel, as they are vital elements in batteries techniques, while minerals also include: silver and rare ground elements that are necessary for solar panel techniques, air turbines and advanced electronics.
The minerals include: platinum used in hydrogen fuel cells, electrical analysts to produce hydrogen, fossil transformers, and advanced batteries techniques.
The report pointed out that at the same time, the escalating global temperatures increase the demand for cooling techniques such as air conditioners, which was subjected to the last hot wave light in the southern hemisphere.

Energy demand

According to the report, this coincides with the growing energy demand from data centers that manages artificial intelligence and cloud computing technologies, along with the electrification of the industrial sectors, which leads to an additional increase in electricity consumption.
In this context, copper emerges as an indispensable material thanks to its high electrical connection, which makes it ideal in the wires and ingredients necessary to transfer energy and distribute it efficiently – a matter that increases as important in light of the integration of renewable energy sources into the networks.
But at the present time, global financial markets are witnessing a state of turmoil due to the aggressive commercial policies adopted by US President Donald Trump, which sparked threats with similar reactions and a large -scale sale wave, amid fears that a global trade war will lead to this size and momentum to an economic slowdown – especially in the United States, as inflation expectations have increased significantly, and witnessed the confidence of consumers and companies A sharp decline in recent months.
The report said: “These fears were clearly reflected in the percentage of copper to gold, which has declined to its lowest levels in several years.”
He added: “Investors rushed to gold as a value of value amid the growing anxiety about economic growth, inflation and financial stability, which prompted its prices to rise.”
On the other hand, and despite the positive expectations of copper, he has faced difficulties in light of the dangers of “inflationary stagnation” in some areas.
The report stated that despite the continued strength of the demand related to the energy transformation, it is not sufficient to compensate for these concerns completely.
The report expected that this percentage will recover in the future, but this will not happen until after reaching solutions to the major geopolitical and economic challenges that the world is currently faced.

Request for copper

The report said that by returning to the current situation in the copper market, fears of the United States are still customs duties on copper imports, one of the most prominent factors that dominate the scene in recent months.
He added that since January, the high -quality copper contract circulated in New York recorded a significant increase compared to the global reference price set on the London Metal Exchange (LME), in light of the traders attempting to anticipate the expected level of customs duties, bringing the price difference currently between 13% and 15%.
He continued: “Directly, this price difference in New York is not attributed to the power of demand from the final users, but rather to the large transformations of stocks towards the American market.
The report said: “While some traders make exceptional profits by supplying copper and shipping to the United States, these flows – which are expected to remain in the United States until they are consumed – will exacerbate the severity of the scarcity of supply in the global market during the second half of 2025.
In a recent report, Goldman Sachs estimated that between 45% and 60% of the global stocks announced from copper may end in the American market by the third quarter of 2025, while the United States represents only 6% of the global demand for refined copper, which may leave the rest of the world suffering from a severe shortage of this vital mineral for energy transformation.

Spacious gap

The recent rush to charging copper to the United States led to a sharp decline in the stocks in the warehouses of the future stock exchanges in London, and also remarkably in Shanghai.
Inventory in China decreased by 55 thousand tons last week, in the largest weekly retreat, registered, while the London Stock Exchange recorded a decline of 10,000 tons, which was not compensated for only a slight increase of 8,000 tons on the American “Comics” exchange.
This decline is not completely attributed to the continued shipping flows towards the United States in order to calculate the declaration of fees, as there are still more shipments on their way to American warehouses, and are expected to arrive in the coming weeks.
In this context, the Financial Times quoted Mercury Trading Company for basic commodities, warning it of the possibility of Chinese stocks from copper to levels close to scratch within a few months.
She pointed out that the market is currently going through “one of the largest shocks of scarcity in its history”, against the backdrop of concerns about American drawings.
At the same time, traders in China reported a noticeable rise in domestic demand, which led to a high price allowance for imported copper.
According to the report, this indicates that, despite the concerns related to economic growth, the price support for copper will most likely exist in the short term, and it is likely that it is likely to be strengthened in the long term, as the global electrical wave that enhances the demand for copper continues at an escalating pace.

Sharp downfall

In a report issued by the International Energy Forum (IEF) last May, it was reported that achieving the goals of the global electricity requires extracting a quantity of copper that increases by 115% than it has been mined throughout human history until now.
According to the report, the exploration expenses implemented by mining companies reached their climax during a full decade in 2024; However, the sector is still facing structural restrictions at the level of supplies in the long run, due to the scarcity of new discoveries, the length of periods necessary for mining development, the decline in the quality of raw materials, and the average cost of discovery costs to four times what they were twenty years ago.
While the precious metal mining companies – especially gold – recorded strong annual gains (for example, the Van Ek Gold Mainers Fund increased by 41%, a fund that tracks a basket of the most prominent mining companies), copper mining companies have witnessed more modest performance due to the aforementioned challenges.
According to the report issued by “Saksu Bank”, nevertheless, given the continued strength of demand and prices despite the concerns surrounding global growth, this sector may deserve renewed attention or at least, to be placed on the radar of potential investors.