On September 8, the world's second-largest copper mine, Glasberg copper mine in Indonesia, suffered a sludge mine crash, seven people were missing, and the search and rescue of production was stopped. It is understood that there is about 800,000 tons of copper produced annually, equivalent to about 3.5 percent of the global total production.

U.S. Free Harbor McMurray Copper Co., the New York Stock Exchange-listed old-fashioned company, has launched a force majeure clause, announcing a 35% drop in output by 2026, which means about 270,000 tons of copper will disappear from the global supply chain, knowing that this number is enough to produce 3 million new energy vehicles, which has plunged the global copper market into a supply crisis.

Goldman Sachs and other agencies described the incident as a "black swan" and expected to cause a loss of 500,000 tons of copper supply in the next 12 to 15 months, accounting for 2% of the world's production capacity to be restored as soon as 2027.

On the 24th, the London Metal Exchange three-month copper price and New York period copper rose more than 3.6%, has increased more than 15% since this year.The industry said that the demand for copper of electric vehicles increased seven to eight times than fuel vehicles, while the copper development cycle will be ten years, its supply will not keep up with the pace of demand growth.The Goldman Sachs predicted that in 2027 RON copper will reach $10750 / ton, the Fed interest rate reduction is also supported by copper price, historically, the US short-term interest rate every drop of about 100 basis points, copper price will rise about 6%.

Reporter: He Jiajing