A Great Copper Squeeze Is on the Horizon

The price of copper — used in everything from computer chips and toasters to power systems and air conditioners — has fallen by nearly a third since March. Driving the drop is fear that a global recession could slow demand.

However, the slide in prices is masking the potential that this most crucial metal could soon be hard to find. Inventories tracked by trading exchanges are near historical lows. Price volatility means new mine output — already projected to start slowing in 2024 — could become even tighter in the years ahead. And some big producers say the current low prices are insufficient for them to put money behind new projects.