Copper Prices Climb to Record Highs

Copper prices climbed for a sixth consecutive session on Wednesday, hitting a new all-time high near $12,300 per metric ton, supported by strong US economic growth, improving demand prospects, and a weaker dollar that has boosted dollar-denominated metals.

Benchmark three-month copper on the London Metal Exchange rose 1.1 percent to $12,195 per ton by 10:10 GMT, after earlier touching a record $12,282. The metal has gained 2.6 percent this week, risen 9 percent in December, and is on track for a nearly 39 percent annual surge in 2025, driven by tight supply conditions and increasing bullish bets.

Copper also reached historic levels in China, with prices on the Shanghai Futures Exchange climbing to a record 96,750 yuan per ton, highlighting strong demand in the world’s largest consumer of the metal. Analyst John Meyer said he would not be surprised if China is actively buying physical copper from the market, taking advantage of current conditions to secure as much supply as possible.

China’s appetite for imports was further underscored by a sharp rise in the Yangshan premium, a key indicator of copper import demand, which jumped to $55 per ton, its highest level since late September, signaling robust physical buying.

Strong US economic data has also supported metals markets, with the American economy expanding at its fastest pace in two years during the third quarter. At the same time, the US dollar is heading for its worst annual performance in more than two decades, as investors increasingly bet on further interest rate cuts next year. A weaker dollar makes metals cheaper for holders of other currencies, boosting demand.

In recent months, significant volumes of copper have flowed into the United States, including more than 50,000 tons shipped from China in November, as markets anticipate possible US tariffs on the metal.

Other base metals also posted gains. Aluminum rose 0.6 percent to $2,956 per ton, its highest level since May 2022, while zinc edged up 0.2 percent to $3,098, lead gained 0.6 percent to $1,994.5, and tin jumped 1 percent to $43,005 per ton. Nickel extended its rally for a sixth session, rising 0.6 percent to $15,835 per ton, amid expectations that Indonesia may cut nickel ore production next year.

Trading activity is expected to thin later in the day, with the London Metal Exchange set to close its open-outcry trading early on Wednesday ahead of the Christmas holiday shutdown on Thursday and Friday.