This increase follows a significant break in the price charts. As evidenced by the recent price action, copper has been gaining momentum since early December, with a parabolic rise visible on the candlestick chart.According to Justin Khoo, Senior Market Analyst – APAC at VT Markets, this strength is not transient, but rooted in a deeper shift in the metal’s industrial relevance.
What is fueling the rally?
According to Khoo, copper globally has risen to record levels above US$13,000 per tonne, driven by a powerful combination of tight supply, significant mine disruptions and increasing demand for electrification, electric vehicles, AI data centers and network upgrades.
These factors have outpaced supply growth, causing the resulting structural shortage to push up prices.
“Geopolitical risks are exacerbating this supply-demand imbalance,” he notes, adding that prices may fluctuate in the short term due to increased volatility. However, the broader trajectory points toward continued strength through 2026, with price forecasts remaining high, according to analyst estimates.
What is the outlook and key levels to watch?
Khoo explains that copper’s current rebound is underpinned by long-term structural demand, especially from sectors such as renewable energy, electric mobility and AI infrastructure.
Supply shocks, including tariff-induced disruptions and disappointing mining output, continue to inject further volatility into trade flows.
“Key levels to watch include current highs near $13,000/ton and technical support at key psychological price levels,” Khoo said.
He adds that the outlook will remain closely linked to macroeconomic policy changes, the recovery of mining production and trade rules, which could determine whether copper remains above these record levels or sees a pullback.
Is copper the new silver? Not quite
Despite comparisons floating around the market, Khoo dismisses the idea that copper is becoming a “new silver.”
He points out that silver derives value both as a precious metal and as an industrial commodity, often seeing speculative demand during economic uncertainty. Copper, on the other hand, is increasingly viewed through a purely industrial lens.
“Copper’s 2025 rally is driven by real utilities and structural transformation rather than sentiment-driven investments,” says Khoo. “It’s a growth barometer in a fast-paced world – not a speculative store of value.”
As copper approaches its peak lifespan and global prices hover at multi-year highs, copper’s role in evolving energy and technology ecosystems is becoming increasingly clear. Whether it maintains this red-hot momentum or sees corrective phases, one thing seems clear: copper has stepped out of the shadows and is taking center stage in the commodity playbook.
(Disclaimer: Recommendations, suggestions, views and opinions expressed by the experts are their own. These do not represent the views of The Economic Times)
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