Quick overview

---

Copper surged by the most in over 16 years as metals continued their dramatic start to the year, driven by a wave of intense speculative trading in China.

Investors are pouring money into base metals on the Shanghai Futures Exchange, expecting greater US growth and increased spending on data centers, robotics, and power infrastructure. Global prices are rising as a result, with copper hitting a record high of $14,125 per ton on the London Metal Exchange, up 7.9%.

China’s leading commodities trading platform is the Shanghai bourse, and sporadic periods of intense trading on the exchange have frequently sparked significant changes in international markets. As of last week, January was already the busiest month ever for the six base metals on the SHFE, and on Thursday, copper recorded its second-highest daily trading volumes ever.

A declining US dollar, increased demand for tangible assets, and heightened geopolitical tensions as the Trump administration pursues a more assertive foreign policy have all contributed to commodities’ eye-watering recent weeks. The rally has most recently been aided by conjecture that the next head of the Federal Reserve will be more dovish than Jerome Powell.

Precious metals, including copper, which is essential to the energy transition, have reached record highs. Even crude oil, which was hampered by worries about a global glut last year, has increased recently. According to Eric Liu, deputy general manager of ASK Resources Co., “commodities are taking turns to rally.”

The price of copper has been hovering around $13,000, and money has been accumulating over the metal for a while. As of 8:19 a.m., copper had increased by 6.4% to $13,922.50 per ton on the LME.