Copper Continues to Shine as Best Prospect at LME Event
Copper remains the favored industrial metal, leading an informal poll at the LME seminar despite increasing competition from tin and other metals.
Editorial Team (ET)June 13, 2025
Copper has once again emerged as the top industrial metal, favored by analysts and industry experts for its significant role in global infrastructure and technology. This year, it secured 46% of votes in an informal poll conducted during the London Metal Exchange (LME) seminar, a slight drop from the 53% it achieved last year but still a commanding lead.
The LME seminar poll gauges sentiment from top market professionals, and this year’s results reaffirmed copper’s critical role. As the demand for electric vehicles, renewable energy systems, and modern infrastructure continues to rise, so does the need for copper. This makes it a key metal for future industrial growth.
Tin: A Strong Contender
Although copper took the top spot, tin wasn’t far behind. Tin secured 36% of the votes, repeating its second-place finish from last year but with a noticeable gain compared to the 23% it secured previously. Tin has been the best-performing metal on the LME so far this year, with a 31% surge in price, outpacing both zinc and copper, which saw 17% and 16% increases, respectively.
According to Tom Langston of the International Tin Association, the tin market is expected to face a deficit of 10,000 metric tons this year. Tin is closely linked to the price of copper, as both metals are heavily used in electronic goods. This connection is expected to drive further price increases for both metals.
Other Metals in the Poll
While copper and tin took center stage, other base metals struggled to make a mark. Votes for metals such as zinc, lead, and aluminum ranged between 2% and 7%, reflecting their lower potential for price gains in the current market environment.
Aluminum, which garnered only 4% of the votes, is facing challenges due to a large influx of supply, particularly recycled aluminum. Jorge Vazquez of Harbor Aluminium highlighted that secondary aluminum production is expanding rapidly, which is expected to pressure prices in the coming years. “We don’t see any scarcity coming in the next three years,” Vazquez added.
Copper’s Market Performance
Copper has continued to trade strongly, with three-month LME copper prices reaching $9,895 per ton on Monday afternoon. Analysts expect copper prices to remain steady around the $9,500 mark in the coming months. Morgan Stanley’s Amy Gower expressed optimism that copper prices could even rise to surpass their previous record of $11,100 per ton, set in May of this year.
Gower also noted that copper demand from China, one of the world’s largest consumers of industrial metals, is not as bearish as some reports suggest. Despite the global economic challenges, China’s demand for copper remains robust, adding support to copper’s positive price outlook.
The Supply Crunch
A key factor supporting copper’s strong performance is the limited supply of new copper mines. As demand for the metal continues to grow, there has been insufficient capital spending on new mining projects to keep pace. This has created a supply crunch, which has kept prices elevated and is expected to continue driving them higher.
Aluminum’s Struggles Amid Surging Supply
Aluminum, on the other hand, is facing different market dynamics. The large-scale production of recycled aluminum has flooded the market, putting downward pressure on prices. As Vazquez pointed out during the seminar, the aluminum market is unlikely to experience any significant scarcity in the near future, which will continue to weigh on prices.
Tin’s Impressive Performance
Tin’s impressive 31% price increase this year has positioned it as one of the top-performing metals on the LME. The market for tin, which is primarily used in solder for electronic goods, is expected to experience a 10,000-ton deficit this year. This supply shortfall, combined with strong demand for electronic components, has driven tin’s remarkable price surge.
Analyst Predictions for Copper Prices
Looking ahead, analysts are optimistic about copper’s price potential. The metal’s price is expected to remain anchored around $9,500 per ton, but there is room for upside. In a bullish scenario, prices could rise to surpass $11,100 per ton, especially if demand from key markets like China remains strong and the supply crunch persists.
Investment Opportunities in Copper
For investors, copper presents a compelling opportunity. Its vital role in the transition to renewable energy, electric vehicles, and global infrastructure makes it a long-term investment option with significant upside potential. With supply constraints and growing demand, copper is well-positioned for future growth.
Conclusion
Copper’s position as the top industrial metal remains unchallenged, with strong demand and supply constraints driving its price potential. While tin has shown impressive performance this year, copper’s vital role in the global economy ensures its continued dominance. As the world moves toward a greener future, copper will be at the forefront of industrial growth.
