Copper prices surged to new all-time highs on Thursday, spearheading a broad rally across industrial metals as investors rotated into physical assets amid heightened geopolitical tensions and a persistently soft U.S. dollar.
The most-active copper contract on the Shanghai Futures Exchange ended the daytime session up 6.71% at 109,110 yuan ($15,708.77) per metric tonne, after jumping as much as 8.53% earlier in the day to a record 110,970 yuan. In London, the three-month copper benchmark on the London Metal Exchange climbed 6.32% to $13,913.50 a tonne by 07:00 GMT, having briefly spiked 7.94% to an intraday high of $14,125.
So far this year, copper prices in Shanghai are up around 9%, while the LME benchmark has gained more than 11%, extending a powerful rally that began in 2025. That earlier advance was driven by supply-side concerns, including mine disruptions and regional bottlenecks, compounded by the threat of new U.S. tariffs.
Traders said copper has increasingly benefited from a shift in investor focus following sharp gains in gold and silver. Thursday’s surge followed fresh record highs in precious metals, as demand for hard assets intensified after U.S. President Donald Trump warned of possible military action against Iran if no agreement is reached on its nuclear programme.
Although the U.S. dollar steadied after the Federal Reserve left interest rates unchanged on Wednesday, it remains close to recent lows. The weaker dollar has supported dollar-priced commodities by improving affordability for buyers using other currencies, helping underpin demand.
The rally in copper has come despite soft spot demand in China, the world’s largest consumer. The Yangshan copper premium, a key measure of Chinese appetite for imported copper, fell to $20 a tonne on Wednesday, its lowest level since July 2024.
Elsewhere in the metals complex, aluminium prices remained firm. The most-active aluminium contract in Shanghai settled 2.92% higher at 25,590 yuan a tonne, while the LME aluminium benchmark rose 1.30% to $3,299.50.
Other base metals also posted solid gains. On the SHFE, zinc rose 2.91%, lead advanced 1.09%, nickel climbed 1.79% and tin edged up 0.28%. On the LME, zinc jumped 2.91%, lead gained 1.44%, nickel added 2.49% and tin increased 1.07%.
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