Copper headed for the longest winning run since 2017 in a December rally powered by the prospect of more stress in the supply chain.
The metal rose as much as 2.2% to $12,493 a ton to put it on track for a 10th day of gains, with positive sentiment showing resilience. Bulls say more metal will be drawn into the US to beat potential tariffs, forcing buyers to pay more.
Copper prices hit a record just below $13,000 a tonne on Monday in an end-of-year surge, before paring gains. Futures have rallied by more than 40% this year, setting up the biggest annual climb since 2009. A weaker US dollar—which makes metals less costly for buyers in other currencies—has also helped to bolster the gains, with a gauge of the greenback losing about 8% in 2025.
Supply issues have dominated metals this year, with copper mines from Indonesia and Chile to the Democratic Republic of the Congo suffering accidents. Aluminum production, meanwhile, is under threat from higher energy costs and supply limits in China, while zinc mines have also been disrupted.
For copper, it’s the threat of US import tariffs that remain the major driver, with traders shipping big volumes into American ports to get ahead of any levies. Mercuria Energy Group Ltd. warned in November that there would be an extreme shortage of the metal in the rest of the world in 2026.
Copper was up 2.2% at $12,489 a ton on the London Metal Exchange at 11:23 am in Shanghai. All other metals on the exchange rose, with nickel leading gainers on the day with a 4.1% climb to $16,455 a ton.
Iron ore futures were steady at $105.60 a ton on the Singapore Exchange, up about 5% this year. The steel-making staple has gained ground in 2025 despite lower steel production in China and rising mine supplies.