Copper price today hits record high above $12,000 a ton
On the London Metal Exchange, copper rose as much as 2% to $12,159.50 a ton, extending a rally that has pushed prices up by more than a third this year and the move puts the metal on track for its biggest annual gain since 2009, as per a Bloomberg report.
Trump tariff concerns fuel copper rally
A key driver behind the rally has been concern that the US could impose tariffs on copper. That possibility has triggered a rush of imports into the United States, forcing manufacturers in other regions into intense competition to secure supplies. As traders work to move metal into the US ahead of any potential trade measures, prices elsewhere have continued to climb.
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Copper rises despite weaker demand in China
What makes the surge striking is that it has come despite weakening demand in China, which consumes roughly half of the world’s copper, as per the Bloomberg report. Copper is often seen as a barometer of global industrial activity, yet slowing usage in China has done little to cool prices. Instead, investors increasingly expect prices to keep rising as shipments to the US accelerate.
AI, electrification, and green energy boost copper demand
Copper’s importance to the global economy has also added momentum to the rally. The metal is essential for electrification and is widely used in electric vehicles, renewable energy projects and power grid upgrades. This year, investors have also been betting on rising demand from the artificial intelligence industry, which is driving growing power needs at a time when supply is under pressure.
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Global mine disruptions tighten copper supply
Those supply pressures have intensified following a series of disruptions at major mines around the world. In the Democratic Republic of Congo, the Kamoa-Kakula complex, co-owned by Ivanhoe Mines and Zijin Mining Group, suffered flooding in one of its underground mines after seismic activity in May. In Chile, a rock blast at Codelco’s El Teniente mine on July 31 killed six people and halted operations for more than a week, threatening the state-owned producer’s recovery after a prolonged slump, as per the Bloomberg report. More recently, a fatal mudslide forced Freeport-McMoRan’s Grasberg mine in Indonesia offline in September.
Mining output forecasts cut for 2025 and 2026
As a result, several mining companies have lowered their production guidance. Deutsche Bank has warned that output from the world’s largest miners will fall 3% this year and could decline again in 2026, as per the Bloomberg report.
While inventories remain adequate for now, concerns about future shortages are growing. Morgan Stanley analysts expect the global copper market to face its most severe deficit in more than 20 years next year, with demand projected to exceed supply by about 600,000 tons, as per the report. Citigroup has said prices could reach $15,000 a ton in a bullish scenario, driven by a weaker dollar and US interest-rate cuts that draw in more investors, as per the Bloomberg report.
Not everyone is convinced the rally will last. Goldman Sachs analysts have cautioned that recent gains are being driven more by investor expectations of future tightness than by current supply-and-demand conditions. Even so, the bank continues to favor copper among industrial metals and recently raised its forecast for next year to $11,400 a ton, as per the Bloomberg report.
FAQs
Why are copper prices hitting record highs?
Prices are rising due to supply disruptions and concerns over potential US tariffs.
Why is copper important for the global economy?
Copper is widely used in electrification, renewable energy, EVs, and power grids.