What’s Fueling Copper’s Historic Price Jump in 2025?

SEATTLE (Scrap Monster): The global copper market has witnessed an exceptional rally in 2025, with prices reaching an all-time high of $11,200 per metric tonne on the London Metal Exchange (LME) in October. The red metal has so far recorded an impressive 27% year-to-date increase, reflecting strong demand and tightening supply conditions worldwide.

Industry analysts attribute this historic surge to a combination of economic, policy, and supply-chain factors that have shaped the market since late 2024. Optimism surrounding potential U.S. Federal Reserve rate cuts and China’s economic stimulus measures—given that China remains the world’s largest copper consumer—helped spark the initial momentum. In addition, concerns over possible 25% U.S. tariffs on copper imports prompted early stockpiling and a sharp increase in shipments to the U.S. during the first half of 2025.

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The rally underscores a widening gap between limited mining output and expanding demand, particularly from sectors linked to the global green energy transition, including electric vehicles, renewable power infrastructure, and energy-efficient technologies. Production disruptions at major copper mines and slower-than-expected capacity expansions have further tightened the supply outlook.

While the price boom has positioned copper mining companies among the biggest beneficiaries, manufacturers and copper-intensive industries are grappling with higher input costs and shrinking margins. Analysts warn that unless new supply sources come online soon, the market could remain under pressure, keeping copper prices elevated through the coming quarters.