Copper prices climbed to new all-time highs this week. Investors responded to recent signals from both China and the U.S. that point to stronger demand and a possible tight supply ahead. On Monday, the price for copper on the London Metal Exchange briefly reached $11,771 per ton. Futures in Shanghai also rose, hitting close to 93,300 yuan per ton. The rally moved across other markets as well, from New York to Mumbai.
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The latest gains followed a key policy meeting in Beijing. Officials there said they plan to support growth in 2026 with a more active spending plan and looser monetary policy. These plans include upgrades to China’s power grid and an expansion of its computing infrastructure. Both areas require large amounts of copper.
In addition, China’s export data showed a recovery in November. The country posted an annual trade surplus of over $1 trillion for the first time. This added confidence to the demand outlook, especially for industrial goods.
Fed Rate Cut Bets and Tariff Concerns Add Pressure
At the same time, financial markets are pricing in a possible interest rate cut by the Federal Reserve. According to the CME FedWatch tool, traders now expect an 85% to 90% chance that the Fed will cut rates by 25 basis points this week. Lower interest rates often weaken the dollar. That tends to support prices of commodities like copper, which are priced in dollars.
Meanwhile, concerns are also building around trade policy in the U.S. Some investors expect that a Donald Trump administration could place tariffs on refined copper imports. That has led to a rise in copper stockpiling across U.S. exchanges. Data shows higher withdrawal requests from London Metal Exchange warehouses and record levels of copper held in the U.S. Comex system.
Chinese analysts have also flagged a growing gap between global supply and demand. Metal is flowing into the U.S. while smelters in China prepare to cut output by 10%. At the same time, mines are facing delays and disruptions. Citic Securities now projects a refined copper shortage of 450,000 tons by 2026. They also expect that prices will need to average above $12,000 per ton next year to bring new supply to the market.
Long-term trends support copper demand. These include the shift to electric vehicles, the expansion of data centers, and significant upgrades to power systems in many regions. In fact, with limited supply growth and rising needs, both traders and producers expect continued price swings.
We used TipRanks’ Comparison Tool to group companies across copper mining, smelting, and EVs that may be impacted by rising copper prices.
