Market analysis and insights

The global copper market is expected to increase at a compound annual growth rate (CAGR) of 5.3% from 2023 to 2032, from its projected USD 304.3 billion in 2022 to USD 496.9 billion by 2032.

The demand for copper is fueled by the expansion of the electrical and electronics sector, which includes the production of printed circuit boards, wiring, motors, and appliances. The demand for copper is further fueled by the rising use of electric cars, renewable energy technologies, and the development of the telecommunications industry. 

Copper Market scope :

Market Definition

The atomic number 29 and chemical symbol Cu are assigned to the element copper. This reddish-brown metal has been used by humans for thousands of years. 

Copper is a vital component in numerous industries, including construction, power generation, and electronics, because of its exceptional electrical and thermal conductivity.
Heat and electricity travel well through copper. Electrical wires, power cables, and electronic parts frequently utilize it. Because of its high corrosion resistance, copper is a fantastic choice for outdoor applications such as roofing and plumbing pipes. Due to its strong malleability and ductility, copper can be easily molded and molded into a variety of forms and sizes. Pipes, tubes, wires, and numerous ornamental things are all made from it.

Due to its inherent antibacterial qualities, copper is beneficial in a variety of settings, including hospitals, water purification systems, and antimicrobial coatings. To improve its qualities, copper is frequently alloyed with other metals. Common copper alloys with unique properties and uses include bronze (copper and tin) and brass (copper and zinc).

Key Market Segmentation

Insights on Application

The Appliances and Electronics Segment Accounted for the Highest Share

In terms of revenue, the appliances and electronics segment was the market leader in 2022, accounting for the highest market share. Copper increases the rate of heat transmission along and across printed circuit boards (PCBs) and lessens the strain brought on by uneven PCB heating, which causes failure. It also enables instantaneous electrical signal transmission due to its great electrical conductivity.

Insights on Region

The APAC Region Accounted for the Highest Share

Due to China's highly developed building and power generating industries as well as ongoing expenditures in the area for improvements in the telecommunications and electronics sectors throughout time, Asia-Pacific is predicted to dominate the worldwide market.

The oldest known metal currently utilized in the building sector is copper. Copper is an ideal material for nearly any building project due to its special blend of physical attributes, including conductivity, corrosion resistance, durability, flexibility, and strength. The region's copper market may thus benefit from an increase in construction activity in Asia-Pacific.

Key Company Profiles

Some key players in the global market are ntofagasta Plc, BHP Billiton Group, Codelco, Anglo American Plc, First Quantum Minerals Ltd., JX Nippon Mining & Metals Corp., Grupo México S.A.B. DE C.V, Jiangxi Copper Co. Ltd., Mitsui Mining & Smelting Co. Ltd., KME AG, Mitsubishi Materials Corp., Norilsk Nickel, KGHM Polska MiedY S.A, and OM Group Inc. 

COVID-19 Impact and Market Status

Lockdowns and other limitations put in place to stop the virus's spread caused disruptions in copper mining and production in many regions of the world. There was a temporary shutdown of mines, which reduced the production of copper. 

As a result, there was a scarcity of copper in some areas and supply lines were interrupted. In several nations, the epidemic caused economic instability and decreased industrial activity. Significant copper users in the construction, automotive, and industrial industries all faced slowdowns and decreased demand. 

The price of copper decreased as a result of the drop in demand. China is the world's largest user of copper, and after the pandemic's first effects, its economic recovery played a critical role in stabilizing the copper market. Copper consumption surged as China's infrastructure and industrial sectors recovered, somewhat offsetting the fall in other areas. The epidemic caused instability in copper prices. 

Prices first decreased as a result of decreased demand and ambiguity. However, as certain economies started to grow again and stimulus programmes were put in place, copper prices started to rise and in 2021 they hit new highs.

Latest Trends

1. The demand for copper is rising as a result of the global move towards renewable energy sources like solar and wind power. Electrical infrastructure, such as power production, transmission, and energy storage systems, depend heavily on copper. The rising popularity of electric cars (EVs) is also a factor in the rise in copper demand because EVs need a lot more copper than conventional internal combustion engine vehicles do.
2. Opportunities for copper in the electrical industry are being created by the emphasis on energy efficiency and the creation of smart grids. Transformers, power distribution systems, and energy-efficient motors all make use of copper. Copper is a key component of smart grid technologies, which improve control and management of the electrical supply.
3. The adoption of copper recycling and the promotion of a circular economy strategy is being driven by the emphasis on sustainability and resource conservation. Copper is a great material for reuse since it is readily recyclable without losing any of its qualities. Recycling aids in meeting the rising demand for copper while preserving natural resources and lessening the negative environmental effects of copper mining.

Significant Growth Factors

Rapid urbanization raises the need for copper in infrastructure and building projects, particularly in emerging nations. The need for copper-based goods including wire, pipes, and connections is driven by the growth of residential, commercial, and industrial structures as well as transportation networks. 

The demand for copper is boosted by the quest for alternative energy sources across the world and the electrification of several industries, including transportation. For effective energy generation, transmission, and storage, wind turbines, solar panels, electric cars, and charging infrastructure all require substantial amounts of copper. 

The need for copper in the manufacture of electrical components, motors, wiring, and connections is driven by the expansion of industrial sectors including automotive, electronics, machinery, and consumer products. The introduction of automation and intelligent production techniques, together with technological improvements, all contribute to rising copper usage. 

Infrastructure expenditures, stimulus plans, and government programmes can all increase demand for copper. Significant amounts of copper are needed for large-scale infrastructure projects including transportation networks, electrical grids, and renewable energy installations, which is boosting market expansion.

Restraining Factors 

The copper market may be impacted by economic downturns, recessions, or volatile market circumstances. Copper usage and pricing may decline during economic downturns due to decreased industrial output and decreasing consumer demand.
Geopolitical events, global supply and demand dynamics, market speculation, and other variables all have an impact on copper prices. In the copper business, high price volatility can breed uncertainty and influence investment choices.
Mining practices, waste management, emissions, and water use restrictions that address environmental issues can limit copper output and drive-up prices. For copper mining firms, adhering to sustainability requirements and reducing environmental effects can be difficult. 
In several applications, copper is up against replacement materials. For instance, due to its cheaper cost, aluminum is occasionally used as a substitute in electrical wiring. Additionally, the discovery of alternative materials with qualities similar to copper might hinder its market expansion in several industries.

Recent Developments in the Global Copper Market: A Snapshot

• Mining corporation Alterian, with headquarters in London, made a significant statement in November 2022 reporting the finding of high-grade copper and silver in its recently purchased Azrar Project located in the western Anti-Atlas Mountains of Morocco. The samples taken from the project site have produced incredibly positive findings, showing considerable copper and related silver mineralization. Multiple project target regions have been found to have high-grade copper and silver mineralization.

• Aurubis AG proceeded to diversify its business activities in the international recycling of metal-bearing products in November 2021. A multi-metal recycling facility is being constructed in the US state of Georgia. Each year, 35,000 tons of blister copper will be produced by processing circuit boards, copper wire, and other recyclable items that include metals.

Key Segments of the Copper Market

Type Overview
• Primary Copper
• Secondary Copper

Form Overview
• Wire Rods
• Plates
• Sheets and Strips
• Tubes
• Bars and Sections
• Others

Application Overview
• Construction
• Transportation
• Appliances and Electronic
• Power Generation
• Others

Regional Overview

North America
• U.S
• Canada
Europe
• Germany
• France
• UK
• Rest of Europe
Asia Pacific
• China
• India
• Japan
• Rest of Asia Pacific
South America
• Mexico
• Brazil
• Rest of South America