Post by : Meena
Hassan
Copper prices hit an all-time high on Thursday, igniting a significant surge in the metals market. This uptick is attributed to rising investor appetite for tangible assets, driven by geopolitical tensions and a weakening U.S. dollar.
On the Shanghai Futures Exchange, the leading copper contract surged by 6.35%, reaching 108,740 yuan ($15,652.12) per metric ton this morning and peaking at an intraday record of 109,570 yuan per ton. In the same vein, on the London Metal Exchange, the three-month copper contract jumped 6.63%, hitting $13,953.50 per ton, with a new record high of $13,967.
Year-to-date in 2026, the price of copper in Shanghai has grown nearly 9%, while London has seen a jump exceeding 11%, continuing the momentum from record highs in 2025. These remarkable increases are largely due to ongoing supply disruptions, including mine closures and local challenges exacerbated by trade disagreements and tariff threats from the U.S.
Market analysts note a transition in investor interest from gold and silver to copper, as the metal's value rises amidst heightened demand for physical commodities against a backdrop of geopolitical uncertainty. This trend has followed escalated tensions, particularly between the U.S. and Iran regarding nuclear discussions.
Following the Federal Reserve's announcement to uphold interest rates, the U.S. dollar has stabilized but remains close to recent lows. A weaker dollar typically enhances the appeal of dollar-priced commodities, making them more accessible for global buyers.
Nevertheless, spot demand in China, the world’s largest copper consumer, has tapered. The Yangshan copper premium, which reflects Chinese import demand, has dropped to $20 per ton, marking its lowest level since July 2024.
Other base metals have also seen significant gains: aluminum rose 3.08% on the Shanghai exchange and 1.87% in London. Gains were similarly registered for zinc, lead, nickel, and tin across both markets.
This metals rally underscores the intricate relationship between geopolitical risks, currency shifts, and supply factors, showcasing the sustained investor confidence in base metals as reliable assets amid uncertainty.
English
