Copper Prices Record Biggest Annual Gain Since 2009 on Tight Supply and AI Boom
Copper | 2026-01-01 06:08:44
Early-stage works are underway, including staff housing, power connections and road access, as preparations intensify for full construction.
By Paul Ploumis
SEATTLE (Scrap Monster): Copper prices capped a historic year with strong gains, underscoring both short-term supply stress and powerful long-term demand fundamentals. On the final trading day of 2025, the three-month copper contract on the London Metal Exchange (LME) settled at $12,558.50 per ton, down about 1% on the day but up more than 40% for the year—its strongest annual performance since 2009. Earlier in the week, prices briefly touched a record high of $12,960 per ton.
ALSO READ:
Copper Prices Surge Despite Economic Slowdown, Structural Factors Cited
Deutsche Bank Raises 2026 Copper Price Forecast
Market volatility toward year-end was driven by supply disruptions and policy-driven inventory shifts. Expectations that the United States could revisit import tariffs on refined copper in 2026 prompted the preemptive movement of over 650,000 tons into the U.S., concentrating nearly two-thirds of global visible stocks within COMEX warehouses. At the same time, fatal accidents and operational disruptions at major mines in Indonesia, the Democratic Republic of Congo and Chile tightened supply further.
Beyond near-term shocks, copper’s rally reflects structural demand growth from the global energy transition, electric vehicles and grid expansion. In 2025, artificial intelligence data centers emerged as a major new demand driver, particularly for power and cooling infrastructure.
Looking ahead to 2026, forecasts diverge. JPMorgan expects prices to remain above $12,000 per ton in early 2026, while Goldman Sachs sees a pullback, with long-term fundamentals still supportive.
POLL
Which factor will most influence copper prices in early 2026?
Frequently Asked Questions
- What was copper’s price performance in 2025?
Copper gained over 40% for the year, briefly reaching a record high of $12,960/ton, before closing at $12,558.50/ton on the final trading day.
- What caused volatility at the end of 2025?
Supply disruptions at major mines and policy-driven inventory movements, including preemptive U.S. imports of 650,000 tons, concentrated two-thirds of global visible stocks at COMEX.
- What long-term demand factors are supporting copper prices?
Growth in electric vehicles, global energy transition, grid expansion, and AI data centers, particularly for power and cooling infrastructure.
