Trade tensions threaten crucial copper industry investment — Bloomberg

Rising trade tensions between the world's largest economies are putting pressure on the investments necessary to meet future copper demand, according to representatives of the copper industry cited by Bloomberg.

US President Donald Trump's attempts to rebalance global trade, which include imposing a 145% tariff on Chinese imports, alongside Beijing's retaliatory measures, are worsening the outlook for global economic growth. At the same time, increasing borrowing costs amidst significant fluctuations in the bond market create a dangerous situation for those making multibillion-dollar decisions related to expanding copper supply, as noted by Bloomberg.

According to CRU Group estimates, copper demand will rise over the next decade. This increase in consumption is expected to be driven by the shift toward new energy sources, the reconstruction of power grids, and a projected increase in data center usage in the United States.

To meet this growing demand, the industry will need to produce an additional 7.5 million tons of copper over the next ten years from projects that have not yet been approved. Given these circumstances, a decline in investment could place significant pressure on the sector, Bloomberg says.