Post by : Meena Ariff

Copper prices surged to a historic high on Thursday, sparking a broad rally across the metals sector. This rise is driven by increased investor demand for physical assets amid global geopolitical tensions and a weakening U.S. dollar.

On the Shanghai Futures Exchange, the most-active copper contract climbed 6.35% to 108,740 yuan ($15,652.12) per metric ton by early Thursday, reaching an intraday record of 109,570 yuan per ton. Similarly, on the London Metal Exchange, the three-month copper contract rose 6.63% to $13,953.50 per ton, hitting a new all-time peak of $13,967.

So far in 2026, Shanghai copper prices have increased nearly 9%, while London prices have jumped over 11%, building on the record gains from 2025. These impressive gains stem from ongoing supply disruptions, including mine closures and regional challenges intensified by trade tensions and U.S. tariff threats.

Market experts observe a shift in investor focus away from gold and silver toward copper, as the metal’s value climbs in response to rising demand for tangible commodities amid global uncertainties. This momentum followed recent geopolitical escalations, notably heightened tensions between the U.S. and Iran over nuclear negotiations.

The U.S. dollar stabilized after the Federal Reserve’s decision to maintain interest rates but remained near recent lows. A softer dollar generally boosts demand for commodities priced in dollars by making them more affordable to international buyers.

Despite the strong price rally, spot demand in China—the largest copper consumer—has weakened. The Yangshan copper premium, a key indicator of Chinese import demand, fell to $20 per ton, its lowest point since July 2024.

Other base metals also advanced: aluminum increased by 3.08% on the Shanghai exchange and 1.87% in London. Zinc, lead, nickel, and tin similarly posted notable gains across both markets.

This metals rally highlights the complex interplay of geopolitical risk, currency movements, and supply challenges, reflecting sustained investor confidence in base metals as valuable assets in uncertain times.

#Global News