Coming into 2025, the global non-ferrous metal market is at a juncture that has several factors tangled in. Fast-rising demands exist for base metals such as copper, aluminum, and rare earth salts because of strongly sourced demands: a green energy transition, electric vehicles (EV), infrastructure projects, yet, inversely, in all those positions where there exists demand, market shortage, irregular prices, and tension exist amongst those who hold them.
To be able to overcome these challenges, businesses should closely monitor market dynamics, price trends, and the security of their supplies. Shanghai Metals Market is one leading provider of market intelligence that helps stakeholders stay ahead with timely reports, data, and analysis.
The Copper Crisis: How to Steer Through the Volatility Amid Rising Demand
The Increasing Relevance of Copper
Copper is one of the most important metals for a wide variety of industries, from construction and electronics to the renewable energy sector. While governments worldwide accelerate their efforts toward decarbonization, copper's role in renewable energy systems, especially in electric vehicles and power grids, has never been more crucial. Global copper demand is expected to increase by 3-4% annually through 2025, according to the International Copper Study Group.
The challenges on the path that copper faces from all corners should also not be underrated. By 15th January 2025, SMM 1 Copper Cathode quoted on average USD 9,080.24/mt which faced a very meager fall since Friday yet indicating still robust supply during copper premiums lying within the ambit of 10-120 yuan/mt. The SMM Copper Procurement Strategy Report highlights that supply will be very tight in the coming years, driven by both underinvestment in mining projects and geopolitical uncertainties in key producing regions, particularly in Chile and Peru.
The Impact of Supply Shortages
With copper inventories at historically low levels, a shortage is looming. This can be elucidated by SMM's Copper Industry Chain Report, which asserted that the Yangshan Copper Premium surged to USD 66/mt in January 2025, a valid supply tightness indicator. This crisis is worsened by postponed new mining projects and an increase in the usage of copper for electric vehicle batteries. Mining disruptions, for instance, in South America, along with delays in significant African copper projects, are driving supply chains even tighter.
Coping with Copper Shortages
Long-term contracts with reliable suppliers would be in a better position to help any business cope with the volatility of copper prices and/or copper shortages. Valuable insights provided in the SMM Copper Procurement Strategy Report shed light on market trends, macroeconomic factors, and price forecasts that would help a company significantly plan its buying schedule and avoid surges in price. All these factors make the recycling of copper a more viable and stable supply source, further easing dependence on primary extraction.
Aluminum: Supply Tightness and Shifting Demand
The landscape of the aluminum market
Aluminum is widely used in manufacturing, such as in automobiles, construction material, aerospace, and packing. As of Jan. 15, 2025, the SMM A00 Aluminum Ingot price stood at USD 2,410.32/mt, down by a slender margin from the previous day. Despite this, the price has fallen over the short term, and demand for aluminum remains strong, impelled by light-weighting in automobiles and the building boom in emerging economies.
Offsetting this somewhat, however, the aluminum market-like copper-faces some challenges, such as increasing energy costs and bottlenecks in infrastructure of major producing countries like China and Russia. Aluminum smelting is a very power-intensive process, and with energy prices becoming increasingly volatile in the major smelting regions, this is driving up the cost of production. Downstream demand has also slowed, as reflected by SMM's news from January 2025, which points to weak spot market trading on account of the ongoing global economic uncertainty.
The Role of Aluminum Recycling
Among the best strategies to reduce the turbulence of the aluminum market is to rely more on secondary aluminum, more commonly referred to as recycled aluminum. According to the SMM Aluminum Procurement Strategy Report, worldwide supplies of secondary aluminum are gaining more prominence, especially with the improvement of recycling technology. By positioning aluminum scrap as a sustainable supply source, companies will not only be reducing dependence on primary production but also bringing down long-term costs.
Furthermore, businesses should look at investing in forecasting tools and data-driven insights-such as that by SMM's Aluminum Price Forecast reports-to foresee market fluctuations and make informed procurement decisions.
Rare Earth Salts: Strategic Importance for Technological Growth
Rare Earth Salts in High-Tech Applications
These are inclusive of metals such as lanthanum, neodymium, and cerium that are integral to high-tech device manufacturing, wind turbines, and EV motors. On January 15, 2025, SMM reports significant rises in key rare earth salts prices as follows: Lanathanum-Cerium Chloride - USD 216.71/mt; Lanthanum Carbonate - USD 349.15/mt. The SMM China Rare Earth Procurement Strategy Report suggests that the demand for rare earth elements has been soaring, particularly in light of the global transition toward green technologies with electric vehicles and renewable energy systems.
Challenges to Supply of Rare Earth
Notwithstanding these issues, the rare earth market is also burdened by some geopolitical challenges such as supply dominated by a few countries, mainly China, at almost 80% of production. This makes the global supply chain for rare earth materials even more susceptible to potential disruptions, specifically in view of China's rapidly growing domestic demand and possible export restraints. This has mobilized the concern of many regarding the long-term availability and price stability of rare earth salts.
Risk Management in Procurement of Rare Earth Salts
In that light, it is necessary that firms consider diversification of their supplier base and alternative sourcing to avert risks relating to shortages in the supply of rare earth salt. The SMM China Rare Earth Procurement Strategy Report will be outlining price trends, market dynamics, and how to secure supplies. The companies should also be into research and development to reduce dependency on the elements by seeking innovative alternatives or increasing the usage of recycled rare earth metals.
SMM: Your Partner in Navigating Non-Ferrous Metal Markets
As the markets for copper, aluminum, and rare earth salts develop, timely access to accurate market intelligence is key. SMM, leading in providing data, reports, and analysis that businesses are looking for, is here to help them surmount these challenges. With a team of over 100 professional analysts, SMM provides in-depth data on base metals, rare earths, and energy transition metals.
SMM Database Pro and Metals Industry Reports support companies' decision-making with detailed, historical, and projected data across key markets, mitigating a business's exposure to market volatility. The major building blocks of supply chain planning and cost management are put within the reach of companies with SMM Procurement Strategy Reports on copper, aluminum, and rare earth salts, thus enabling optimum purchasing strategy.
Conclusion: Future-Proofing Against Supply Shortages and Demand Surges
Long-term contracts, supply source diversification, investment in recycling technologies: These are just some of the things that will play key roles in thriving within the evolving global metal market by way of proactive planning and data-driven decision-making. Equipped with expert insight and forecasting from SMM, a business can manage the complexities of the market for 2025 and into the future.
