Quick overview

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Copper reached a new high of $12,000 per ton at the end of a historic year marked by trade unrest, limited supply, and hope for long-term demand.

 

Copper is expected to see its largest annual gain since 2009, with only a few trading days remaining on the London Metal Exchange before year-end. The metal, which is essential for the energy transition, has surged in value in recent months due to growing worries about the world’s supply becoming more constrained.

The immediate cause is a rush of metal to the US that could leave the rest of the world undersupplied in an attempt to avoid future import tariffs. However, unforeseen mine outages and the excitement surrounding copper’s use in artificial intelligence infrastructure have also contributed to a 36% increase this year.

Difficult negotiations for annual ore supply contracts led to a deal for smelters to receive zero dollars per ton for processing fees—the lowest amount ever—a clear indication of mounting supply stress.

Many optimistic predictions have already been made for 2026. Citigroup, Inc. has stated that due to the rush to get metal to US shores, prices could reach $13,000 per ton by the second quarter.