COPPER rallied about three percent towards record levels as traders anticipated tightening supplies and potential United States import tariffs in the new year.
“Overall supply shortfalls, coupled with regional dislocation caused by US tariffs, are propelling copper,” Bloomberg News quoted China Securities analysts led by Wang Jiechao as having wrote. China Securities is forecasting a global market shortage exceeding 100,000 tons in 2026, the newswire said.
Benchmark futures approached the peak below $13,000 per ton established last week, with three-month copper reaching $12,839 on the London Metal Exchange before trading at $12,823 in Shanghai.
Concerns about American tariffs have prompted increased shipments to that country, creating tightness elsewhere. A strike commencing at Chile’s Mantoverde mine highlighted supply vulnerabilities amid expanding global demand.
The metal posted a 42% in 2025, marking its strongest annual performance since 2009. Exchange-tracked US stockpiles have expanded whilst London’s cash-to-three-month spread remains firmly in backwardation, indicating near-term tightness.
All base metals strengthened on Monday as Asian equities climbed to records on technology sector optimism. Investors assessed implications from the weekend’s US seizure of Venezuelan leader Nicolas Maduro, including Washington’s evolving approach towards resources central to security and economic growth.
Aluminium advanced 1.8% to $3,069 per ton, reaching its highest level since April 2022, supported by tightening supply outlooks and long-term demand expectations.
