Copper prices have climbed to a fresh all-time high above $12,000 a metric ton, putting the industrial metal on track for its strongest annual performance since 2009.
The rally has been driven by a combination of severe supply disruptions and trade dislocations linked to the tariff agenda of US President Donald Trump, affecting global copper flows and tightening availability outside the United States.
On the London Metal Exchange, copper rose as much as 0.9% to $12,031.50 a ton, extending a surge that has lifted prices by about 37% so far this year.
The metal’s advance has continued despite weakening demand in China, highlighting how supply and trade dynamics have outweighed traditional indicators of industrial consumption.
Tariff fears influence global copper trade
The possibility that the US could impose tariffs on copper has become a central driver of the rally.
Traders and manufacturers have rushed to ship copper into the US in anticipation of possible levies, pushing American imports sharply higher.
This front-loading of shipments has reduced availability elsewhere, forcing buyers in other regions to bid aggressively to secure supplies.
The impact on global trade flows has been significant. Prices have continued to rise even as copper usage has deteriorated rapidly in China, which accounts for roughly half of global consumption.
Copper is often viewed as a bellwether for industrial activity, but the slowdown in China has done little to restrain the market.
Instead, expectations that tariffs could be introduced have encouraged traders to divert even more material toward the US, reinforcing the upward pressure on prices.
Mine outages deepen supply concerns
Alongside trade disruptions, the copper market has been hit by a wave of mine outages across America, Africa, and Asia.
These operational challenges have heightened concerns that the market is heading toward a sizeable deficit.
Deutsche Bank has warned that output from the world’s largest copper miners is expected to fall about 3% this year and could decline again in 2026.
Analysts at the bank described 2025 as a “heavily disrupted year,” noting that several major mines have faced significant operational problems.
As a result, they see the copper market as being in a clear deficit, a view that has added momentum to the rally.
Supply risks have long been a feature of bullish copper forecasts, with years of underinvestment and declining ore grades leaving the market vulnerable to shocks.
The latest disruptions have brought those concerns into sharper focus at a time when inventories are already under pressure.
Bullish forecasts tempered by demand risks
Looking ahead, some banks see further upside for copper prices.
Citigroup has told clients that prices could reach $15,000 a ton in a bullish scenario, supported by a weaker dollar and US interest-rate cuts that could attract more investor inflows.
Longer term, analysts also point to expected growth in demand from sectors such as electric vehicles, renewable energy, and artificial intelligence.
However, the rally has its skeptics. Goldman Sachs analysts have cautioned that recent price gains have been driven largely by investor bets on future tightness rather than current supply-and-demand conditions.
The bank noted that similar optimism during the early stages of the pandemic eventually faded as lacklustre buying from China dented higher prices.
Even so, Goldman Sachs continues to favor copper among industrial metals and, in mid-December, raised its forecast for next year to $11,400 a ton, underscoring the market’s conviction that structural supply constraints and trade uncertainty will keep copper prices elevated.
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