A series of major mine disruptions this year, combined with fears of potential U.S. import tariffs, has prompted traders to ship large volumes of copper into the United States to get ahead of possible levies. As a result, copper prices have risen nearly 40% this year and are on track for their largest annual increase since 2009, News.Az reports, citing Bloomberg.
On Wednesday, copper prices on the London Metal Exchange climbed as much as 1.8%, reaching a record high of $12,282 a ton. Futures were trading higher as of 9:43 a.m. local time.
“Factors such as supply disruptions, expectations of ample global liquidity, and relatively stable macroeconomic growth have accelerated the year-end surge in copper prices,” said Xiao Jing, chief non-ferrous metals analyst at SDIC Futures Co.
Longstanding concerns over supply risks materialized this year. Global copper output was hit by a deadly accident at the world’s second-largest copper mine in Indonesia, an underground flood in the Democratic Republic of Congo, and a fatal rock blast at a mine in Chile, all of which constrained production.
At the same time, fears over potential tariffs have encouraged traders to increase shipments to the United States, tightening supply in other regions.
Demand prospects, however, remain strong. Large volumes of copper are needed for the expansion of power grids, renewable energy infrastructure, and manufacturing. Investors are also betting that copper consumption will rise further as the artificial intelligence industry drives growing demand for electricity and related infrastructure.
All six base metals traded on the LME are heading for annual gains in a year marked by widespread supply-side pressures, with rallies persisting even as signs of weakening industrial demand emerge.
Aluminum prices are up nearly 16% in 2025 as slower production growth in China and rising energy costs elsewhere restrict supply. Zinc has gained about 4% following key mine outages, while tin has surged 48% after Indonesia, a major producer, moved to crack down on illegal mining.
