2026.01.1204:05:26UTC+00Copper Gains for Second Session

Copper futures surged towards the $6 per pound benchmark on Monday, marking the second consecutive session of gains. This movement brings the metal closer to record highs, driven by concerns over tightening supply. Traders remain cautious about the possibility of US-imposed tariffs on refined metals, which could lead to redirected shipments to the United States, thereby constraining global supply. In addition, major South American producers are grappling with disruptions stemming from natural disasters, strikes, and political instability. Concurrently, robust industrial demand bolsters prices, stimulated by the transition to renewable technologies and advancements in artificial intelligence. Electric vehicles necessitate up to four times the amount of copper used in conventional gasoline-powered cars, while AI data centers depend significantly on copper wiring. Additionally, markets are factoring in potential interest rate reductions by the US Federal Reserve this year, alongside anticipated policy easing in China, a leading consumer.