The price of %Copper is surging as supply cuts roil the global market for the mined commodity.
Copper’s price has risen above $9,000 U.S. a ton, up 5% in the past week, as traders weigh risks to supply at mines and smelters around the globe.
Miners have been reducing their copper extractions in recent months as demand for electric vehicles has cooled. Copper is increasingly used as a key component in electric vehicles.
However, traders now worry that the worst of a global downturn in electric vehicle sales is over and that the supply of copper is inadequate to meet current and future demand.
Copper’s price increased 2% to $9,066.50 U.S. a ton on the London Metals Exchange on March 15 as concerns about inadequate supply of the industrial metal grow more intense.
Prior to this week, copper’s price had been in long-term decline, having fallen 17% over the last two years.