Copper prices hit new record highs amid concerns about supply shortages.
According to the Vietnam Commodity Exchange (MXV), the metals market continued to attract investment yesterday (May 11), with copper being a prominent commodity as its price climbed to a new record high on the COMEX exchange.
At the close of trading on May 11, the price of COMEX standard copper futures surged to $6.50 per pound, equivalent to $14,243 per ton – an all-time high.
The main driver of the price increase stems from growing concerns about the risk of supply disruptions in the global market. Prolonged tensions in the Middle East are disrupting energy and industrial chemical supply chains, thereby tightening the global supply of sulfuric acid. This is a crucial raw material in copper mining and refining, particularly in major producing countries such as Chile and the Democratic Republic of Congo.
The risks are further heightened following news that China will halt sulfuric acid exports starting in May. Last year, China accounted for approximately 45% of Asia's total sulfuric acid exports and about 23% of global supply. This raises concerns that input costs for the copper mining and smelting industries will continue to escalate in the coming period.
Meanwhile, supply from Chile, the world's largest copper producer, shows no clear signs of recovery, with production continuing to weaken since the beginning of the year and remaining lower than the same period last year.
In terms of demand, the outlook for copper consumption continues to be strengthened by sustained positive manufacturing activity in China. The country's April manufacturing PMI reached 50.3 points, exceeding market expectations and remaining above the 50-point threshold, reflecting continued expansion in the manufacturing sector.
Furthermore, the global investment wave in data centers, power grids, and renewable energy continues to provide long-term support for copper prices. This is a crucial metal in power transmission systems, electronics, and digital infrastructure.
Another factor supporting copper prices is concern that the US may impose import tariffs on refined copper in the near future. This is driving stockpiling and shipping of copper to the US in anticipation of future trade risks, given that nearly 60% of refined copper consumption in the US depends on imported supplies.
As of May 11th, total copper inventories at COMEX warehouses reached 564,067 tons, nearly four times higher than the same period last year and approximately six times higher than the historical average. This development indicates a trend of copper stockpiling in the US market in anticipation of potential tightening of imported supplies in the near future.
Previously, in a statement released by the White House on July 30, 2025, the US Secretary of Commerce was tasked with assessing the domestic copper market by June 30 to determine the basis for considering import tariffs on refined copper. According to the proposed roadmap, the tariff could reach 15% from the beginning of 2027 and increase to 30% from 2028.
In the domestic market, copper prices remained high throughout April, causing import activity to slow down in the latter half of the month. Between April 16th and 30th, Vietnam imported approximately 20,553 tons of copper, a decrease of 22.5% compared to the first half of the month. Conversely, copper exports reached 2,934 tons, 2.6 times higher than the previous period.
Cotton prices hit a two-year high due to prolonged drought in the US.
In line with the overall positive market trend, according to MXV, the industrial raw materials group continued to attract investment yesterday, notably cotton, which extended its price increase for the third consecutive session and reached its highest level in two years.
At the close of trading, July cotton futures rose 3.6% to $1,935 per ton. Notably, the price of this commodity has increased nearly 38% since the conflict in the Middle East erupted.
According to MXV, the biggest supporting factor for current cotton prices comes from the prolonged drought in the United States, the world's largest cotton exporter.
The first three months of 2026 are witnessing widespread and severe drought conditions across the United States, with levels considered the worst in decades. According to data from the US Drought Monitor, in the southern region—the country's largest cotton-growing area—over 90% of the acreage is affected by varying degrees of drought. Of that, approximately 26.7% is experiencing "extreme" or "exceptionally severe" drought, significantly increasing the risk of reduced yields in the upcoming crop year.
Besides unfavorable weather conditions, tensions in the Middle East are also negatively impacting the global fertilizer market as supply disruptions and prices surge. This continues to put pressure on production costs for cotton farmers in the US, particularly in West Texas.
Although the forecast for cotton production in the 2026-2027 season is only a slight decrease to around 13.76 million bales, MXV believes that the risk of a deeper decline remains if dry weather conditions continue for an extended period.
In addition to supply factors, market sentiment is also supported by expectations that China may increase imports of US agricultural products following the meeting between US President Donald Trump and Chinese President Xi Jinping in Beijing this weekend. Investors expect cotton to be among the commodities that could benefit if both sides send more positive signals about trade.
In Vietnam, according to data from the Customs Department, cotton imports in April increased sharply by 21.1% compared to the previous month and by 12.9% compared to the same period last year, reaching approximately 170,000 tons with a value of 305.2 million USD.
Source: https://nhandan.vn/mxv-index-ap-sat-moc-3000-diem-gia-dong-lap-ky-luc-moi-post961607.html
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