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Copper rose to a record high on Tuesday, crossing the $12,000 a tonne threshold for the first time as concerns about US tariffs and potential shortages fuelled a rally that has endured since October.
The industrial metal, which is seen as a bellwether for the health of the global economy, rose 1 per cent to as much as $12,039 a tonne in morning trading in London.
Gold and silver also rose to fresh record highs on Tuesday, driven by geopolitical tensions and expectations that the US Federal Reserve will cut interest rates next year.
Record copper prices were being “helped by prospects of further support for the economy in China”, said John Meyer, an analyst at corporate advisory firm SP Angel. A weaker US dollar was also driving both precious and base metals prices higher, he added.
The red metal has rallied to a series of record highs since October, when serious incidents at major mines hit production and triggered fears about supply shortages. Even before that, analysts had been expecting shortages to materialise in the coming years as demand grows.
“Even in a world of 2 per cent global GDP growth, we would expect sizeable deficits in the copper market over the next year,” said analysts at Jefferies this week.
The recent rally has also been fuelled by growing concerns about the potential for President Donald Trump’s administration to impose additional import tariffs on copper next year. Current tariffs do not target copper cathode, but concerns that future ones might have encouraged traders to ship large quantities into the US.
Large volumes have already built up in the US this year, and the continued flow in that direction may “squeeze local supply in China and elsewhere in the world”, said Meyer.
Copper is on track for its largest annual rise since 2009, having risen 37 per cent so far in 2025.