Mumbai: Copper prices have reached an all-time high after a powerful rally in December. According to Bloomberg, industrial metal prices crossed USD 12,000 per ton for the first time ever. On Wednesday,
copper on the London Metal Exchange rose as much as 1.8 percent to hit a record USD 12,282 per ton, before closing at USD 12,162.50.
So far in 2025, copper prices have jumped nearly 40 percent. This is the biggest yearly rise since 2009. The strong performance has surprised both investors and industries that depend heavily on copper.
Supply Problems Shake the Market
The biggest reason behind this rally is a serious supply crisis. Several major copper-producing countries have faced unexpected disruptions this year. Indonesia, the world’s second-largest copper producer, saw production hit after a deadly accident at a mine.
In Congo, underground flooding affected output, while Chile faced fatal rock blasts at mining sites. These events clearly showed how fragile global copper supply has become. Long-standing fears about supply risks finally turned into reality in 2025.
US Tariff Fears Add More Fuel
Another major reason for the price jump is the fear of possible US import tariffs on copper. To avoid future levies, traders rushed to send large quantities of copper to the US in advance.
This sudden movement tightened supply in other global markets, pushing prices even higher. As a result, copper’s December rally gained more strength and broke long-standing records.
Strong Demand Supports High Prices
Demand is also playing a key role. Copper is essential for power grids, clean energy projects, manufacturing, and electric infrastructure. On top of that, the rapid growth of artificial intelligence has increased electricity needs, boosting copper demand further.
Experts say this rally is not just speculation. According to SDIC Futures, strong fundamentals like supply disruptions, global liquidity expectations, and steady economic growth are supporting prices.
Other Metals Also Shine
Copper is not alone. Other base metals have also performed well in 2025. Aluminum is up 16 percent, zinc has gained 4 percent, and tin has surged 47 percent, helped by strict action against illegal mining in Indonesia.
What Lies Ahead
Even though industrial demand is slowing in some areas, tight supply conditions continue to support copper prices. If supply remains limited in 2026, high copper prices may stay for a long time.
