Germany's Copper Rod market recently witnessed a significant surge, with prices experiencing a remarkable 1.5% increase in the last week of April. This surge highlighted the steady and consistent rise in copper prices within the country's market. Notably, the three-month copper price on the London Metal Exchange (LME) reached its highest level in nearly two years on April 22, further emphasizing the market's upward trajectory. This surge has not only impacted the Copper Rod market but has also reverberated in the German non-ferrous scrap metal market, where wholesale buying-in prices saw notable increases.

The remarkable ascent in Copper Rod prices has been attributed to factors such as increasing demand for new technology and its applications in the energy transition. Additionally, positive forecasts for limited supply and optimistic demand have contributed to the surge in Copper Rod prices, demonstrating the market's resilience and growth prospects.

A combination of factors, including geopolitical unrest, labour strikes in the mining industry, more stringent mining laws, and disruptions in major African mines, have resulted in ongoing challenges with copper supply. These challenges, along with global factors such as positive manufacturing data from China, expectations of interest rate cuts in the US and Europe, and elevated sentiment towards commodities, have been pivotal in bolstering the Copper Rod market in Germany.

The supply side of the copper market has faced disruptions in major African mines, compounding setbacks in key mines in Panama and South America, leading to a downward revision in Copper Rod production guidance. This reflects supply constraints that have driven up copper prices, significantly impacting the Copper Rod prices in Germany. The rebound in US manufacturing and encouraging Chinese manufacturing PMIs have further challenged concerns about a downturn in the sector, significantly impacting Copper Rod demand.

First two months of 2024 saw a 7% global increase in refined copper consumption, mostly due to strong apparent demand in China, according to preliminary data from The International Copper Study Group (ICSG). It is believed that refined usage has declined in the rest of the world. The central bank of Chile reported that copper exports to the country in March totalled USD 4.09 billion, a slight decrease from the same month last year.

Following a retreat on the London Metal Exchange (LME) on May 9, 2024, copper prices, the LME market continues to demonstrate resilience and upward momentum throughout this year. Even though the Copper Rod price fell by 0.5% in the 2nd week of May, the downside for Copper Rod is considered limited, with notable support and a strong lining of positions at that level. This indicates an underlying resilience and confidence in the market, with specific price support levels and continued bullish positions.

In summary, the recent surge in Germany's Copper Rod market has paved the way for remarkable economic growth, underpinned by rising demand, supply shortages, and the metal's crucial role in the global shift towards renewable energy sources. While short-term fluctuations are expected, the overall outlook suggests that prices are likely to remain supported by ongoing demand for the metal, indicating the market's resilience and growth potential.