Copper prices have reached a new high, touching $US13,000 a tonne for the first time. This surge extends the metal’s strong rally from the previous year, driven by concerns over supply due to mine outages and trade disruptions. Benchmark copper futures in London rallied as much as 4.3 per cent.
A strike at the Mantoverde mine in Chile is the latest in a series of supply disruptions coinciding with increased global demand. Copper is a crucial industrial metal used in various applications, including data centres and car batteries, making it vital for the ongoing energy transition. In 2025, copper prices surged by 42 per cent, marking the best annual gain since 2009. Accidents at major mines in Indonesia and the Democratic Republic of Congo also contributed to supply pressures and drove prices higher.
The threat of potential US import tariffs on copper has further influenced market dynamics. Traders have reportedly increased shipments to the US in anticipation of these tariffs, leading to reduced supplies in other regions. This situation has revived arbitrage trading, reminiscent of market fluctuations from the previous year when similar tariff considerations were present. UBS Group analysts noted that while the global refined copper market was in surplus in 2025, US tariffs significantly impacted metal and inventory flows, boosting US imports.
