Benchmark three-month copper on the London Metal Exchange (LME) rose as much as 3.1 percent in early trading to a record high of US$13,387.50 a tonne before settling slightly lower but still above US$13,200.
The jump marks a new milestone in a rally that saw copper breach $12,000 for the first time in late December last year.
Copper is widely used in the industrial economy, from construction and energy infrastructure to electric vehicles and data centers that support the growth of artificial intelligence. Analysts attribute the gains to a combination of production setbacks at major mines and increased concerns that future U.S. trade tariffs could further disrupt flows.
Major copper mining operations such as Freeport-McMoRan’s (NYSE:FCX) Grasberg complex in Indonesia have faced challenges since last year, while a strike at Capstone Copper’s (TSX:CS,ASX:CSC,OTC Pink:CSCCF) Mantoverde mine in Chile reduced production prospects in one of the largest copper producing countries in the world.
The prospect of new tariffs under the Trump administration has also shaped expectations. Traders have started shipping refined copper to the US ahead of any tariffs, reducing supply elsewhere. In addition, data shows that copper inventories in Comex warehouses have risen to more than 450,000 tonnes, well above last year’s levels.
Copper outlook for 2026
Market watchers expect many of the forces driving copper prices through 2025 to persist.
Supply constraints are expected to remain acute this year as aging mines and capacity shortages weigh on availability. New projects such as Arizona Sonoran Copper Company’s (TSX:ASCU,OTCQX:ASCUF) Cactus project and the long-awaited Resolution mine in the US are still years away from significant production.
Demand for copper is expected to grow as the global energy transition accelerates.
Natalie Scott-Gray, senior metals demand analyst at StoneX, told the Investing News Network in an email that tariffs and refined flows into the U.S. have boosted inventories, but broader demand drivers remain intact.
“A lot of this tightness has to do with concerns about U.S. tariffs,” she said.
China, the world’s largest consumer of copper, also shapes the outlook. Despite weakness in the real estate sector, the country achieved economic growth and is expected to prioritize copper-intensive sectors in the new five-year plan.
Long-term projections from industry groups indicate that structural demand growth will exceed supply increases.
A A postponement estimates that copper demand could rise 40 percent by 2040, which would require substantial investment and new mines to keep pace. Likewise, Wood Mackenzie Predictions Demand for copper will increase by 24 percent by 2035, while the Predicts the International Copper Study Group a refined copper shortage of 150,000 tons by 2026 alone.
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Securities Disclosure: I, Giann Liguid, have no direct investment interest in any company mentioned in this article.
Editorial Disclosure: The Investing News Network does not guarantee the accuracy or thoroughness of the information reported in the interviews it conducts. The opinions expressed in these interviews do not reflect the opinions of the Investing News Network and do not constitute investment advice. All readers are encouraged to conduct their own due diligence.
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