Copper contracts rise 1.2%, nearing historic highs

Three-month copper futures on the London Metal Exchange rose by approximately 1.2 percent to $14,331 per tonne, placing them just about 1.4 percent away from the historic peak of $14,527.5 recorded in January.

However, the most notable signal comes from the spot market, where the price of spot copper rose by approximately $478 per tonne above three-month futures, marking the largest premium since the supply crunch crisis in 2021.

This condition, known as “backwardation,” reflects buyers’ willingness to pay a higher price to obtain copper now rather than waiting for later delivery, indicating a clear decline in short-term supply.

As demand for copper grows, China’s largest solar equipment manufacturer has begun producing photovoltaic cells using copper as a substitute for silver, following significant increases in silver prices.

Scientists in the United States have developed nanowires made of niobium arsenide (NbAs), a step that could pave the way for replacing copper in future electronic chips. The material has demonstrated electrical performance that improves as its size shrinks, unlike copper, which loses efficiency at the nanoscale.

Longi announced the successful commissioning of its new plant within three months, noting that the cells produced using copper alloys exhibit higher efficiency.

Meanwhile, the launch of this new plant represents an expansion in the solar equipment sector, which already suffers from persistent overcapacity and significant losses.