Top Commodity Traders Drive Lucrative Deals in the Copper Market

Top Commodity Traders Drive Lucrative Deals in the Copper Market

Elena Silva
2 min read

Top Commodity Traders Drive Lucrative Deals in the Copper Market

In the competitive copper market, top commodity traders such as Mercuria, Glencore, and Trafigura are vying for lucrative deals, resulting in favorable conditions for mining companies due to a significant supply squeeze. Eurasian Resources Group (ERG) is leveraging this situation by seeking up to $1 billion in upfront payments for its copper and aluminum production, attracting interest from major bidders including Trafigura and Mercuria. Long-term contracts are being secured at favorable terms, with deals extending as far as 2028, primarily driven by a shortage in copper concentrates.

Although recent dips in copper prices have seen it fall below $10,000 per metric ton due to increased global inventories, the market remains optimistic about future demand. This optimism is fueled by the transition towards clean energy and advancements in AI-fueled industrial technology, indicating a positive outlook for the copper market in the coming years.

Key Takeaways

  • Intense competition among traders like Mercuria, Glencore, and Trafigura is driving lucrative deals for copper miners.
  • Eurasian Resources Group seeks up to $1 billion in upfront payments for copper and aluminum.
  • Long-term contracts are being signed at favorable terms, extending as far as 2028.
  • Copper market faces a supply squeeze in copper concentrates, essential for smelters.
  • Despite recent price drops, market optimism remains high due to clean energy and AI advancements.


The competition among top traders is shaping the copper market, leading to significant upfront payments and long-term contracts, which mitigate risks for miners. Despite short-term price volatility, the copper market holds strong due to robust demand from clean energy and AI sectors, indicating a sustained bullish outlook. Traders' strategic moves to secure supplies could potentially reshape market dynamics and influence future pricing mechanisms, possibly resulting in a more consolidated market structure.

Did You Know?

  • Mercuria, Glencore, and Trafigura: These are major global commodity trading companies specializing in the trade of energy products, metals, and minerals. Mercuria is known for its extensive global energy trading network, Glencore is one of the world's largest global diversified natural resource companies, and Trafigura is recognized for its leadership in non-ferrous metals and bulk materials trading.
  • Eurasian Resources Group (ERG): A leading diversified natural resources group with a global presence in over 15 countries, known for its significant role in the production of copper, cobalt, and aluminum, among other minerals.
  • Copper Concentrates: These are the primary products of copper mining and are crucial for smelters, refining into pure copper metal. The quality and quantity of copper concentrates significantly impact the global supply chain, meeting the increasing demand for copper in various industries, including electronics and renewable energy technologies.

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