Copper poised for best year since 2009 after December surge

Copper extended a powerful December rally that’s carried prices for the industrial metal to unprecedented highs above $12,000 a ton on fears over a tighter global market in 2026.

A series of major mine outages this year have combined with the threat of US import tariffs, leading traders to pour metal into the country to front-run potential levies. As a result, copper has has gained almost 40% this year and is on track for its biggest annual jump since 2009.

On Wednesday, prices on the London Metal Exchange rose as much as 1.8% to an all-time high of $12,282 a ton. The commodity was up 0.8% to settle at $12,162.50.

“Factors including supply disruptions, global liquidity expectations, and relatively stable macroeconomic growth, have accelerated the year-end surge in copper prices,” said Xiao Jing, chief non-ferrous metals analyst at SDIC Futures Co.

Supply risks, long feared by the market, came to fruition this year. A deadly accident at the world’s second-largest copper mine in Indonesia, an underground flood in the Democratic Republic of Congo and a fatal rock blast at a mine in Chile all crimped global production.

Meanwhile, tariff fears have led traders to ramp up shipments to the US, tightening supplies elsewhere.

At the same time, demand prospects remain robust, with massive quantities of copper required to build out power grids, new energy infrastructure and manufacturing. Investors are also betting copper consumption will surge further to feed the growing power needs of the artificial intelligence industry.

All six base metals on the LME are headed for annual gains in a year that’s seen an array of supply-side pressures. Rallies have sustained even as industrial demand shows signs of wavering.

Aluminum is up 16% in 2025 as slowing production growth in China and soaring energy costs in the rest of the world crimp supplies. Zinc has gained almost 4% after key mine outages, while tin jumped 47% after major producer Indonesia cracked down on illegal mining.

Read More: How tight supply, AI demand propelled copper price towards $12,000