Copper nears record $12,000 as supply risks drive rally
Copper prices edged closer to $12,000 a metric ton, approaching a new all-time high as supply disruptions and tariff-related trade dislocations continued to fuel a powerful rally that has lasted for months.
Often viewed as a bellwether for the global industrial economy, copper traded 0.4% higher on the London Metal Exchange (LME), hovering near Monday’s record level of $11,996 a ton, News.Az reports, citing Bloomberg.
Prices have risen about 37% so far this year, putting copper on track for its strongest annual performance since 2009.
While recent gains have been supported by a broader rally in risk assets, analysts say the main driver has been expectations that large volumes of copper will continue flowing into the United States, drawing down inventories in other regions. Some market participants, however, caution that global demand remains relatively subdued.
“The current rise in copper prices lacks demand support and is primarily driven by macroeconomic factors and supply-side dynamics,” said Zhang Ping, an analyst at CCB Futures Co. He added that prices are still “expected to continue rising, fueled by market sentiment.”
Industrial metals more broadly have posted strong gains this year. Aluminum, zinc, tin, lead and nickel are all on track for annual increases. Aluminum reached its highest intraday level since the aftermath of Russia’s invasion of Ukraine in 2022 on Monday and was flat on Tuesday.
As of 10:02 a.m. local time, LME copper was up 0.4% at $11,973 a ton, with all metals trading higher on the exchange. Aluminum rose 0.6%, while nickel gained 1.8%.
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