Copper surged to a record high on Thursday as a broad rally swept through industrial metals, driven by strong demand for physical assets amid rising geopolitical tensions and a weaker U.S. dollar.
The most-traded copper contract on the Shanghai Futures Exchange jumped 6.71% to close at 109,110 yuan ($15,708.77) per metric ton. Earlier in the session, prices briefly climbed as much as 8.53%, setting a new all-time high of 110,970 yuan.
Copper prices also soared in London, with the benchmark three-month contract on the London Metal Exchange rising 6.32% to $13,913.50 per ton by early European trading. Prices had earlier spiked nearly 8% to reach a fresh record of $14,125 per ton.
So far this year, copper prices in Shanghai have gained around 9%, while the London benchmark is up more than 11%. The rally builds on last year’s strong performance, which was fueled by supply disruptions at key mines and concerns over regional trade dislocation linked to U.S. tariff threats.
Traders said copper has benefited from a rotation out of precious metals, following sharp gains in gold and silver.
Earlier in the week, both gold and silver hit record highs as investors rushed into hard assets amid heightened geopolitical risks. Tensions escalated after U.S. President Donald Trump warned Iran of possible military action if it failed to reach an agreement over its nuclear program.
Meanwhile, the U.S. dollar steadied after the Federal Reserve kept interest rates unchanged. Despite the pause, the dollar remained near recent lows, helping to support dollar-denominated commodities by making them cheaper for buyers using other currencies.
Copper’s gains came despite signs of weak spot demand in China, the world’s largest consumer of the metal. The Yangshan copper premium, a key indicator of Chinese import demand, fell to $20 per ton on Wednesday, its lowest level since July 2024.
Elsewhere in the metals market, aluminium prices remained firm. The most-active aluminium contract in Shanghai closed 2.92% higher at 25,590 yuan per ton, while the London benchmark rose 1.30% to $3,299.50.
Other base metals also posted gains. On the Shanghai exchange, zinc climbed 2.91%, lead added 1.09%, nickel rose 1.79%, and tin edged 0.28% higher. On the London Metal Exchange, zinc jumped 2.91%, lead gained 1.44%, nickel advanced 2.49%, and tin rose 1.07%.
