06:53 AM EDT, 04/26/2024 (MT Newswires) -- Copper hit US$10,000 a ton for the first time in two years as speculation builds that the world's mines will struggle to meet a coming wave of demand from green industries, Bloomberg News reported earlier Friday.

According to the report, the metal has reclaimed that threshold as a historic squeeze on supply of mined ores risks tilting the market into a major deficit, and investors turn increasingly optimistic about demand.

The report said one headwind to the rally is that Chinese demand is looking alarmingly soft. It added the disconnect is evident in futures positioning on the London Metal Exchange, where investors have boosted bullish bets to a record while sales by commercial entities have surged.

But recent supply challenges and an improving outlook for global usage are emboldening copper bulls like BlackRock Inc. and Trafigura Group, which say the metal will have to jump even higher to spur the construction of new mines, the report said.

The report noted millions of tons of new supply are set to be needed in coming years for use in electric vehicles, renewable energy, and vastly expanded power grids, as major mines become harder to find and more expensive to build or expand. BHP Group's mega-bid for Anglo American Plc this week highlights that many miners would prefer to buy rivals than pull the trigger on entirely new projects, it said.

(Market Chatter news is derived from conversations with market professionals globally, and/or from other media sources. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)