Why is the price of copper so high

Overview of the main reasons：

*Copper mine supply has grown by less than 2% annually since 2013
*Rising energy prices may have boosted copper demand while also increasing copper production costs
* Electric vehicle sales surge by 160% in 2021, driving up copper demand
*China's economic recovery in late 2020 and early 2021 may also be a factor driving copper prices higher

The unusually slow growth in copper supply is the result of a combination of factors. First, copper prices fell 58% between the beginning of 2010 and the beginning of 2016, almost to the production cost of copper mines, which inhibited new investment in copper mining and ore processing facilities. Second, the copper content of copper ore has gradually decreased over time. Although the total proven reserves of copper continue to increase, the cost of mining has been rising, most of which is energy costs.

And supply issues. From the perspective of current global demand, these metal raw materials are used in new energy, advanced photovoltaic, superconducting, and other fields, so their price increase itself represents the overall trend of industrial products, especially copper and silver.

Copper prices have closely tracked oil prices so far