Ukraine war increases copper demand

“The war consumes many tons of copper every day – at the end of the war there will be a new mine in Ukraine with all this copper scrap,” a producer told Fastmarkets.

“Demand for brass is increasing.”

Most types of ammunition use copper in some form, and cartridge cases are made of brass, an alloy of copper and zinc.

A 155-millimeter NATO artillery shell contains 0.5 kg of copper. According to the European Defense Agency (EDA), the Ukrainian armed forces fire up to 7,000 shells a day.

According to the Royal United Services Institute (RUSI), a British defense think tank, the Russian equivalent is the 152mm shell. According to consulting firm Bain & Company, Russia produces 4.5 million shells annually and has increased its production by 150% in the past 12 months.

According to Bloomberg, US production in Ukraine averaged 14,400 shells per month before the war, but defense industry trade magazine DefenceOne reported that the country plans to increase its production to 100,000 shells per month by the end of 2025.

“War is good for the metals business,” said Fastmarkets analyst Andy Farida.

“One reason why copper prices remained stable while other base metals did not could be increased demand due to the ongoing war in Ukraine.”

The industry’s military demand for copper has been the focus in recent years.

Mining magnate Robert Friedland recently told Bloomberg that despite China’s weak real estate market, demand for military equipment in the country is very high.

“Europe is rearming, Japan is rearming. The U.S. military is worried about a shortage of 155mm howitzer shells. What do you think the world’s army will consist of if all this gunfire continues?” Friedland told Bloomberg.

“If someone points a gun at you, you need the police officer to be able to shoot back.”