Copper Prices Reach Unprecedented Highs Amid Geopolitical Turmoil

Post by : Mina Rahman

On Thursday, copper prices reached unprecedented highs, prompting a significant rally within the metals market. This surge is attributed to heightened investor demand for physical assets amid ongoing geopolitical uncertainties and a declining U.S. dollar.

The most-active copper contract on the Shanghai Futures Exchange saw a remarkable increase of 6.35%, rising to 108,740 yuan ($15,652.12) per metric ton by early Thursday. It peaked intraday at 109,570 yuan per ton. On the London Metal Exchange, the three-month copper contract climbed 6.63%, hitting $13,953.50 per ton, achieving a record high of $13,967.

Since the beginning of 2026, copper prices in Shanghai have surged nearly 9%, while London prices have jumped over 11%, continuing the upward trend from 2025. These gains are largely influenced by ongoing supply disruptions, including mine closures and regional issues exacerbated by trade tensions and threats of U.S. tariffs.

Experts indicate a shift in investor interest from gold and silver to copper, driven by the rising demand for tangible commodities amid global uncertainties. This momentum has been intensified by recent geopolitical tensions, particularly involving the U.S. and Iran over nuclear discussions.

The U.S. dollar has stabilized following the Federal Reserve's decision to keep interest rates unchanged, though it remains near recent lows. A softer dollar typically enhances demand for dollar-denominated commodities as they become more affordable for international buyers.

Despite the impressive price surge, China—the largest consumer of copper—has witnessed a decline in spot demand. The Yangshan copper premium, an important indicator of Chinese import appetite, dropped to $20 per ton, marking its lowest level since July 2024.

Other base metals also experienced gains: aluminum rose by 3.08% on the Shanghai exchange and 1.87% in London. Notable increases were also seen in zinc, lead, nickel, and tin across both markets.

This impressive rally in metals underscores the intricate relationship between geopolitical risks, currency fluctuations, and supply chain challenges, showcasing robust investor confidence in base metals as strategic assets during turbulent times.