Copper prices have made a promising start in 2025, hitting a three-week high amid robust demand driven by China’s aggressive stimulus measures. This surge highlights the growing role of copper in global industries, although concerns over trade tariffs and long-term supply constraints may temper the outlook. Investors are watching closely as the dynamic interplay between demand and policy unfolds.
Copper’s price has climbed over 6% in the early days of 2025, with futures on COMEX reaching $4.29 (€4.17) per pound—the highest since mid-December. This upward momentum reflects tightening supply and expanding demand across key sectors, including renewable energy, electric vehicles, and artificial intelligence. However, underinvestment in copper mining poses a long-term challenge. According to S&P Global, copper mine production is projected to peak in 2025–2026, with declines expected thereafter, potentially exacerbating supply concerns.
China, the world’s largest consumer and producer of copper, remains pivotal in shaping market dynamics. In 2024, copper prices experienced significant volatility, driven largely by China’s economic policies. Sweeping stimulus measures announced last September, including lower lending rates and direct financial support, briefly fuelled a price surge. However, the lack of sustained policy implementation and a strong US dollar following Trump’s election victory dampened momentum, bringing prices down by year-end.
This year, China’s expanded stimulus measures are reigniting optimism. Programmes like the consumer trade-in scheme and anticipated rate cuts are expected to stimulate demand further. Analysts suggest that direct fiscal support, particularly in construction and infrastructure, could be crucial for maintaining price growth. While Beijing’s moves have buoyed short-term sentiment, the absence of concrete long-term strategies leaves the outlook uncertain.
As the world transitions to greener technologies and smarter industries, copper remains at the forefront. The base metal’s indispensable role in energy systems and advanced technologies underscores its strategic importance. Investors are closely monitoring China’s next steps, which will likely set the tone for copper markets in 2025.
Jubilee Metals Group plc (LON:JLP) is a diversified metal recovery business with a world-class portfolio of projects in South Africa and Zambia. The Company’s expanding multi-project portfolio across South Africa and Zambia provides exposure to a broad commodity basket including Platinum Group Metals, chrome, lead, zinc, vanadium, copper and cobalt.
