Global copper prices have stabilized below the USD 9,000 per tonne mark following the resolution of a brief but intense border dispute between the Democratic Republic of Congo (DRC) and Zambia.
Earlier concerns about a potential disruption to one of the world’s key copper export corridors had driven prices up for two days.
However, after reaching around USD 8,900 per tonne on August 13, 2024, prices dipped slightly below USD 8,800 as tensions eased.
The border crisis began when the DRC unilaterally banned the import of beer, soft drinks, and lime from Zambia in an effort to boost its domestic production.
This move sparked protests in Zambia, prompting the closure of border posts over the weekend as a security measure.
The closure raised alarm within the mining industry, as the DRC, the world’s second-largest copper producer, relies heavily on Zambian routes for its copper exports.
Fortunately, emergency negotiations between the trade ministers of both countries led to the swift reopening of the borders on August 13, 2024, averting a prolonged disruption to global copper supplies. The rapid resolution of the crisis contributed to the stabilization of copper prices in the international markets.
The incident underscores the complex economic interdependence between the two nations. In 2023, Zambia’s exports to the DRC amounted to $1.6 billion, while imports from the DRC were just $186 million, making the DRC Zambia’s third-largest export market.
The two countries plan to continue discussions, particularly as the DRC seeks to reduce its reliance on imported goods that can be locally produced.
