Copper prices surged to record levels on Thursday, extending a broad rally across metals as investors increased exposure to physical assets amid rising geopolitical risks and a weaker U.S. dollar.
The most-active copper contract on the Shanghai Futures Exchange jumped 6.71% to settle at 109,110 yuan ($15,708.77) per metric ton, after climbing as much as 8.53% earlier in the session to an all-time high of 110,970 yuan per ton.
Copper prices also rose sharply in London. The benchmark three-month copper contract on the London Metal Exchange (LME) gained 6.32% to $13,913.50 per ton by 0700 GMT, after hitting a record intraday peak of $14,125 per ton, up 7.94%.
So far this year, the Shanghai copper contract has risen around 9%, while the LME benchmark is up more than 11%, following a strong rally in 2025. Prices have been supported by supply concerns linked to mine disruptions and regional dislocations amid uncertainty over potential U.S. tariff actions.
Traders said copper has also benefited from rotation flows, as investors move into industrial metals after sharp gains in gold and silver, both of which have recently touched record highs.
The broader metals rally has been underpinned by geopolitical tensions, particularly after U.S. President Donald Trump warned of possible action against Iran if nuclear negotiations fail. This has reinforced demand for hard assets as a hedge against global uncertainty.
The U.S. dollar remained near recent lows despite stabilising after the Federal Reserve kept interest rates unchanged on Wednesday. A weaker dollar typically supports commodities priced in the greenback by making them cheaper for overseas buyers.
Copper prices climbed despite soft spot demand in China, the world’s largest consumer. The Yangshan copper premium, a key indicator of Chinese import demand, fell to $20 per ton, its lowest level since July 2024.
Other base metals also posted gains. Aluminium on the Shanghai exchange rose 2.92% to 25,590 yuan per ton, while the LME aluminium price climbed 1.30% to $3,299.50 per ton. Zinc, lead, nickel and tin recorded moderate gains across both Asian and European markets, tracking the broader strength in metals.
