Copper prices have surged past $14,000 per ton, approaching historic highs due to rising supply risks and geopolitical tensions. The rally is driven by strong demand from China, the world's largest consumer.
China's expanding power grids, renewable energy investments, and AI sector growth are boosting copper demand. Supply disruptions, including logistical issues with sulfur transport from African copper belts, are exacerbating the price hike.
Economist Parviz Heydarov warns that the price surge could trigger a chain reaction, increasing costs for electronics, home appliances, automotive, and construction sectors. Copper is essential for modern technologies, especially electric vehicles and renewable energy.
To resolve the crisis, geopolitical tensions must ease, particularly in the Middle East and the Strait of Hormuz. Any disruption to supply chains limits global supply.
For Azerbaijan, higher copper prices benefit exports, as the country is a copper producer. This boosts foreign currency inflows and state budget revenues.
