Copper metal recorded an unprecedented historical jump in global markets, with its price exceeding the $13,000 per ton mark for the first time, driven by a wave of geopolitical concerns and expectations of supply shortages in international markets.
New record highs on the London Stock Exchange
According to Bloomberg News, three-month copper futures surged 3.1% to a record high of $13,387 per ton on the London Metal Exchange today. This increase surpasses the previous day's peak, reflecting strong buying momentum in the commodities markets.
Impact of potential US policies
Analysts attribute this meteoric rise primarily to growing concerns that the administration of US President Donald Trump might impose new tariffs on refined metals. These expectations have prompted investors and major traders to focus on securing supplies within the United States, creating anxiety about a potential supply shortage in the rest of the world, which in turn has fueled the price surge.
Strong performance of industrial metals
This surge wasn't a sudden occurrence; the "red metal," a cornerstone of the wire, cable, and infrastructure industries, has seen gains exceeding 20% since late November. In line with this broader metals rally, aluminum prices have also climbed to their highest levels in over three years, signaling a new upward trend in the basic materials sector.
The economic importance of copper and its global impact
Economists have dubbed copper "Dr. Copper" due to its remarkable ability to diagnose the health of the global economy. The significance of this event lies in the fact that copper is an indispensable element in global energy transition plans; it is a key component in the manufacture of electric vehicles, wind turbines, and smart grids.
The price exceeding the $13,000 mark indicates potential inflationary pressures that manufacturing industries and the renewable energy sector may face, as the rising cost of raw materials will increase the costs of major projects around the world.
Looking ahead: Supply shortages and the challenges of 2026
This record high comes after the metal reached levels exceeding $12,000 per ton last December. Concerns are growing that the global market will face a more severe shortage by 2026, as existing mines struggle to meet rapidly increasing demand and new supplies are difficult to extract quickly. This anticipated gap between supply and demand makes copper one of the most attractive assets for speculation and inflation hedging in the current period.
