Copper prices surged to an all-time high on Thursday, driven by a broad rally in metals markets, fueled by investors’ growing appetite for physical assets amid geopolitical tensions and a persistently weak U.S. dollar. The rally reflects increasing concerns over supply constraints, rising industrial demand, and the safe-haven appeal of commodities in times of global uncertainty.
On the Shanghai Futures Exchange, the most-active copper contract climbed sharply, closing daytime trading up 6.71% at 109,110 yuan ($15,708.77) per metric ton. Earlier in the session, the metal set an unprecedented intraday record of 110,970 yuan per ton, marking an 8.53% jump from the previous close.
Analysts say the surge is being supported by multiple factors, including ongoing industrial expansion in China, disruptions in global supply chains, and heightened geopolitical tensions that could affect exports from major producing countries. Copper’s critical role in construction, renewable energy, and electric vehicle production has further amplified demand from investors and industrial buyers alike.
“This rally underscores copper’s status as a barometer for global economic activity and a hedge against currency volatility,” said a commodities analyst. “With ongoing uncertainty in global markets, investors are increasingly turning to physical metals like copper to preserve value.”
The record-setting prices come amid a broader uptrend in base metals, with nickel, aluminum, and zinc also experiencing significant gains, reflecting robust demand and constrained supply. Traders are closely monitoring how these price movements may influence manufacturing costs and broader inflationary pressures in global markets.
Market watchers caution, however, that while the surge is impressive, copper prices remain vulnerable to shifts in economic data, central bank policies, and supply developments in key producing regions. The metals market is expected to remain volatile as investors balance optimism over demand with concerns about potential disruptions and geopolitical uncertainties.
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