Copper has topped its record price after reaching $US10,361 ($13,200) per tonne on the London Metal Exchange (LME) last week.
In April, the commodity rose to $US10,008, which was just shy of its previous $US10,190 per tonne record from 2011.
Copper demand has been a result of rebounding economies from the COVID-19 pandemic.
T-Commodity partner Gianclaudio Torilizzi told Reuters that the industry is in “panic mode”.
“We’re in uncharted territory right now and the market is a bit frothy. The industrial players are in panic mode since there’s not much supply,” Torilizzi said.
The record price was achieved on 7 May.
A Reuters poll has predicted copper to stall in the second half of the year due to China’s warning that a cap will be placed on high commodity prices to reduce inflation.
Last week, China’s National Development and Reform Commission (NDRC) suspended economic communications with Australia to push for Beijing’s move away from Australian commodities.
“Australian Commonwealth Government officials launched a series of measures to disrupt the normal exchanges and cooperation between China and Australia out of a Cold War mindset and ideological discrimination,” the NDRC stated.
Wood Mackenzie stated that China is unlikely to ban imports on Australian commodities it has a heavy reliance upon.
Wood Mackenzie anticipates China will instead raise administrative costs for imports.
Goldman Sachs predicted that copper would hit $US15,000 per tonne by 2025.
“We estimate that by-mid decade this growth in green demand alone will match, and then quickly surpass, the incremental demand China generated during the 2000s,” Goldman Sachs stated.
“Ripple effects into non-green channels mean the 2020s are expected to be the strongest phase of volume growth in global copper demand in history.”