30.12.202511:19:56UTC+00Copper Rebounds Toward Record High

Copper futures in the United States have increased beyond $5.6 per pound, nearing the record high of $5.8 reached on December 26th. This is poised to result in a 45% gain for this year, as market participants move metal into the US amid rising supply uncertainties. The copper supply chain has been affected by suspension of operations at Freeport-McMoRan's Grasberg mine in Indonesia, which accounts for 3% of the global supply, following a fatal incident. Additionally, supply concerns have been exacerbated by protests from workers in Chile and Peru against mining companies. This period of uncertainty aligns with renewed threats from US President Trump to impose tariffs on various forms of copper commodities, which had initially been excluded from duties this year. These developments have led to an increase in copper stockpiling in US warehouses, drawing shipments away from major global trading centers in London and Shanghai. On the demand side, the metal's extensive use in electrification technologies continues to be sustained by governmental commitments to transition away from fossil fuels. Furthermore, rising capital expenditures on data centers and AI infrastructure are expected to further support copper consumption.