Copper Hits Record $12,000 High
Copper prices reached a record high above $12,000 per tonne, up nearly 35% this year from mine supply shortages in Chile and Peru. Demand from EVs, renewables, and AI data centers drives the surge, even with softer Chinese buying.
MARKET NEWS
12/24/20251 min read
In spite of continued supply problems and trade concerns, copper prices surged up to a record high above $12,000 per ton on the London Metal Exchange (LME), the first time the industrial metal has reached this level.
Record-Breaking Rally Details
On December 22, prices increased by as much as 2% to $12,159.50 per ton, continuing an impressive yearly gain of almost 40%, the biggest since 2009. As of late December, copper had likewise increased 35.52% year to date, trading at over $5.48 per pound (more than $12,000 per ton)
Key Drivers Behind the Surge
At the same time that demand for electrification, renewable energy, EVs, AI data centers, and grid upgrades is soaring, mine outages in Chile, Peru, Indonesia, and other regions have drastically reduced global supply. Despite weaker demand from China, which uses half of the world's copper, potential U.S. tariffs under President Trump have caused a surge of imports into American warehouses, tightening availability elsewhere.
Future Outlook and Risks
Without new mines or recycling ramps, BloombergNEF predicts copper shortfalls beginning in 2026 and perhaps reaching 19 million tons by 2050. Analysts foresee sustained rising pressure. Prices are expected to average $12,500 a ton in Q2 2026, according to JPMorgan. However, there are risks, including slowdowns in Chinese demand and delays in new project permits.