Scrap Copper Prices Canada 2025

• Demand: The demand for copper is expected to remain robust, influenced by:
  • Electrification: Increased adoption of electric vehicles (EVs) and expansion in renewable energy projects like solar panels and wind turbines, which require significant amounts of copper.
  • Infrastructure: Global infrastructure projects, especially in emerging markets, continue to consume large quantities of copper.
  • Technology: The tech sector's growth, with an emphasis on data centers and 5G infrastructure, also drives copper usage.
• Supply: On the supply side:
  • Mining Constraints: There's a persistent challenge in mining new high-grade deposits, leading to a reliance on existing reserves.
  • Recycling: The role of scrap copper becomes more pivotal as primary copper supply struggles to keep pace with demand. Recycling rates might increase, impacting price dynamics.

• Global Economic Health: Economic growth, particularly in the US, China, and Europe, directly influences copper prices. A stable or growing economy typically boosts copper prices due to higher industrial activity.
• Policy Shifts: New policies, especially in major copper-consuming countries like China with its real estate market stimulus, can alter demand dynamics.
• Trade Policies: Tariffs, trade agreements, or conflicts can shake up supply chains, affecting copper scrap prices.

• Sustainability Push: Environmental regulations encouraging recycling could increase the demand for scrap copper, thus supporting higher prices.
• Advancements in Recycling: Technological improvements in recycling processes might reduce costs, encouraging more scrap to enter the market, potentially stabilizing or reducing prices.

• Early 2025: The year begins with copper prices around $4.00 per pound, reflecting a stabilization after a volatile 2024. Analysts from Fastmarkets predict a slight uptick due to seasonal demand from construction sectors recovering post-winter.

  
• Mid-2025: Predictions vary, but a consensus from posts on X suggests a potential increase, with Goldman Sachs forecasting prices could climb to $6.80 per pound by late 2024, extending into 2025 due to supply deficits.

  

  

• Late 2025:
  • Optimistic Scenario: If economic recovery in major markets like China accelerates and green initiatives see significant funding, prices could soar past $7.50 per pound, as per some Citigroup forecasts from late 2023.

    
  • Pessimistic Scenario: However, if global growth stalls or if there's an unexpected increase in copper supply from new mining ventures or recycling efficiencies, prices might hover around current levels or even dip slightly below $4.00 per pound.

• North America: Strong demand from the US for infrastructure and technology could keep prices firm.
• Europe: Continued policy support for green technologies might lead to higher scrap copper demand, supporting price levels.
• Asia: Particularly China, where economic stimulus could either push prices up if successful or lead to market saturation if overdone.

Historical Scrap Copper Prices in Canada

To get a better understanding of the long-term trends and patterns in scrap copper prices in Canada, let's take a look at the average annual prices for scrap copper over the past decade:

As you can see from the chart, the price of scrap copper in Canada has been steadily increasing since 2017, with some minor fluctuations along the way. However, it's worth noting that the price of copper was much higher in the early 2010s, with the average price exceeding $4.00 CAD per pound in 2011 and 2012.

Scrap copper prices in Canada have been subject to significant fluctuations in recent years. Copper is a widely used metal, and demand for it varies depending on economic conditions and industry needs. The scrap copper market can be influenced by factors such as global supply and demand, currency fluctuations, geopolitical events, and the availability of substitutes. This article will provide an overview of the current state of the scrap copper market in Canada and explore the trends and factors that have influenced its pricing over the past few years.

Overview of the Canadian Scrap Copper Market

The Canadian scrap copper market is a crucial component of the country's economy, with the metal being used in various industries such as construction, electrical, transportation, and consumer goods. The scrap copper market in Canada is primarily driven by domestic demand, but it is also influenced by international markets.

The price of scrap copper in Canada is determined by various factors, including supply and demand, the quality of the scrap metal, currency fluctuations, geopolitical events, and the cost of refining and transportation. The price of copper is typically quoted in US dollars per pound or metric ton.

Factors Influencing Scrap Copper Prices in Canada

Supply and Demand

The supply and demand for copper are major factors that affect its price in the Canadian scrap market. Copper is a finite resource, and mining it is becoming increasingly expensive and difficult. This has led to a growing trend of recycling copper scrap, which has become an essential source of raw material for the copper industry. The demand for copper scrap in Canada is driven by the domestic construction and manufacturing sectors.

International Markets

Canada is a major exporter of copper scrap to international markets, including the United States and China. The global demand for copper and the overall health of the global economy can have a significant impact on the price of copper scrap in Canada. For instance, in 2020, the COVID-19 pandemic led to a significant reduction in global demand for copper, which caused a decline in the price of copper scrap in Canada.

Currency Fluctuations

The value of the Canadian dollar relative to the US dollar can also impact the price of copper scrap in Canada. When the Canadian dollar is strong relative to the US dollar, it can make Canadian scrap copper less expensive for international buyers, increasing demand and raising prices.

Geopolitical Events

Geopolitical events such as trade tensions, natural disasters, and political instability can affect the price of copper scrap in Canada. For instance, the imposition of tariffs on imported goods by the United States or China can lead to a reduction in demand for copper scrap, which can result in a decline in prices.

Quality of the Scrap Metal

The quality of the scrap metal also influences its pricing in the Canadian market. High-quality scrap copper that is free from impurities is in high demand and can command premium prices. However, lower-quality scrap copper may be sold at a discount or require additional processing, which can affect its pricing.

Cost of Refining and Transportation

The cost of refining and transportation is another factor that can impact the price of scrap copper in Canada. Refining copper scrap into pure copper requires energy and resources, and transportation costs can vary depending on the distance and mode of transportation. These costs can be reflected in the price of scrap copper.

Scrap copper prices in 2025 are poised at a critical juncture where multiple global factors will dictate their trajectory. The overarching narrative leans towards an increase, driven by sustained demand from green technologies and industrial growth, though tempered by potential supply increases through recycling and new mining projects. For those in the scrap metal industry, staying informed, understanding market signals, and perhaps even hedging against price volatility could be key strategies for the year ahead.