Overview
- London Metal Exchange copper set a record at $12,960 per metric ton at the start of the week before easing to the mid‑$12,000s, leaving 2025 gains around 40% and extending the longest winning streak since 2017.
- Supply shocks from unplanned mine outages, including Freeport‑McMoRan’s Grasberg accident in Indonesia, have tightened availability and fueled the rally.
- Trade policy uncertainty pushed large refined volumes into the United States ahead of a potential tariff decision next year, swelling Comex stocks as LME inventories fell and widening the gap between U.S. and global benchmarks.
- Long‑term demand tied to electrification, EVs, power grids and a rapid data‑center buildout is underpinning consumption, with JPMorgan projecting averages above $12,000 in 2026 while Goldman Sachs sees a $10,000–$11,000 range next year.
- Some analysts caution the move looks stretched given softer usage signals in China and hoarding, as elevated prices and earlier U.S. tariffs on finished copper products add cost pressure for builders and developers.