Copper futures resumed their strong upward trajectory during today's trading, recording notable gains that coincided with a decline in the US dollar index and the announcement of positive Chinese economic data showing growth in line with Beijing's government targets, which boosted risk appetite in global commodity markets.
According to trading data from the London Metal Exchange, the price of copper rose by 1.3% to reach $12,965 per ton . The gains weren't limited to the red metal; the upward trend extended to most industrial metals, with nickel jumping by 2.6%, tin increasing by 2.8%, and aluminum rising by 0.8%.
Drivers of the rise: Artificial intelligence and clean energy
Copper has seen a strong and sustained rise over the past five months, driven by a combination of structural and fundamental factors. Chief among these is the artificial intelligence (AI) boom , which has created unprecedented demand for the metal, used extensively in data centers, advanced wiring, and the power transmission networks needed to run new digital infrastructure.
Furthermore, the global shift towards renewable energy is playing a pivotal role in supporting prices, as copper is a key component in the manufacture of electric vehicles, wind turbines, and solar panels. This increased demand is clashing with genuine concerns about global supply shortages, putting upward pressure on prices.
China and the dollar's impact on markets
From a macroeconomic perspective, the weakening US dollar has made dollar-denominated metals less expensive for holders of other currencies, thus stimulating buying. Heavy buying of metals in China in recent weeks has also supported prices, especially given that China is the world's largest consumer of industrial metals, and any signs of recovery in its economy are immediately reflected in commodity exchanges.
Record levels and deficit fears
Copper prices surged to record highs last week as markets assessed mine disruptions in key producing regions like Latin America and growing concerns about a supply deficit this year compared to rising demand. Analysts also noted a flow of copper into the United States in anticipation of potential tariffs, further intensifying competition for available stockpiles.
In Asian trading, the most actively traded copper contract on the Shanghai Futures Exchange rose 1.7% to 104,970 yuan ($15,046.44) per ton, after hitting a new record high of 105,650 yuan. In London, the most active copper futures contract gained 0.6% to $13,240 per ton, paring gains slightly after reaching a new record high of $13,400 per ton during the session.
