The price of copper has reached a record level as the United States and China move closer to an agreement aimed at reducing trade tensions, while supply issues have simultaneously constrained availability in the global market.
Three-month contracts on the London Metal Exchange rose to $11,146 per ton, breaking the record set in 2024. Since the beginning of the year, the price of copper, one of the most important industrial metals and indicators of economic growth, has surged by more than 25 percent.
According to Morgan Stanley’s estimates, the global copper market could experience its largest deficit in the last two decades by 2026.
In Asia, a meeting is being prepared between US President Donald Trump and Chinese leader Xi Jinping on the sidelines of the APEC summit in South Korea. Trump stated that negotiations on the trade agreement are on the right track, further boosting investor optimism.
The copper market this year has been marked by significant upheavals due to the trade war and sectoral sanctions that have affected global metal flows. Additional problems have been caused by incidents at the largest mines, including a landslide at the Grasberg mine in Indonesia operated by Freeport McMoRan.
Analysts highlight that prices are supported by a greater appetite for risk and expectations of an agreement between the US and China, while concerns about shortages outside the US market further intensify supply pressure.
On the London Metal Exchange, the price rose by 0.7 percent to $11,114 per ton.
With demand rising, optimism about copper’s role in the energy transition and the development of data centers for artificial intelligence is also increasing. China has announced that it will significantly increase the share of domestic consumption in its economy, which could further drive prices up.
Anglo American warned earlier this week that production from its key mine will be lower than planned next year, while disruptions have also been reported in South America and Central Africa.
Copper stocks in warehouses monitored by the LME have fallen to their lowest level since July, while US stocks overseen by Comex remain relatively high. The weakening dollar has also boosted prices as metals denominated in US currency become more attractive to foreign buyers.
Later in the day, a decision is expected from the US central bank regarding a possible new interest rate cut, which could further weaken the dollar and boost commodity prices.
