The protracted war in Ukraine is fueling a surge in copper demand, according to industry insiders. The insatiable demand for weapons and ammunition is putting a strain on global copper supplies, pushing prices higher.
Warfare Eats Up Copper Supplies
Military sources estimate that a single NATO artillery shell uses roughly half a kilogram of copper. With Ukraine firing thousands of these shells daily, the conflict is rapidly consuming vast quantities of the metal. Analysts point to this increased military consumption as a key factor behind copper’s resilience in a market where other base metals have faltered.
Industry experts are cautioning of potential copper shortages as military stockpiles are rapidly depleted and defense contractors ramp up production. Mining magnate Robert Friedland warned that strong military demand from countries like China, the United States, and Europe could exacerbate existing supply chain issues.
Friedland highlighted the growing importance of copper in modern warfare, stating that “military demand in the country is very high.” He added, “Europe is rearming; Japan is rearming. The United States military is worried about a shortage of 155 mm howitzer shells. Where do you think the world’s army is made out of when all the shooting goes on?”
Copper’s unique physical properties make it a vital component in modern weaponry. Its ductility, malleability, and excellent electrical conductivity make it ideal for manufacturing bullet casings, which are typically composed of brass, an alloy of copper and zinc.
The intense heat generated during firing puts a tremendous strain on these casings. Copper’s ability to withstand high temperatures without melting is essential for the safe and reliable operation of firearms. Furthermore, copper’s conductivity ensures the efficient transmission of electrical current within firing mechanisms.
Concerns Rise Over Long-Term Impacts
Analysts warn that the sustained high demand for copper in ammunition production could have long-term consequences for the global copper market. While copper prices have remained relatively stable compared to other base metals, experts predict a potential price hike as stockpiles dwindle and producers struggle to meet rising demand.
This price increase could have a ripple effect across various industries that rely heavily on copper, from construction and electronics to renewable energy production.
The war in Ukraine has underscored the critical role of copper in modern warfare and defense readiness. Countries around the world are reassessing their military stockpiles and increasing defense spending.
This renewed focus on military preparedness is likely to place continued pressure on global copper supplies in the coming years. As demand outpaces production, stakeholders across the copper industry will need to adapt to this shifting landscape.
Source: Mining.com
