Copper prices surged to an all-time high as global supply concerns and supportive macroeconomic conditions continued to drive demand.
Copper prices reached a record level of $6.06 per pound in international markets, testing their highest level ever amid ongoing supply disruptions and strong demand expectations. The rally that began last year has carried into the new year, supported by monetary easing, infrastructure spending, and the global energy transition.
Monetary Policy and Dollar Weakness Support Prices
The U.S. Federal Reserve’s move toward interest rate cuts, declining real interest rates, and reduced demand for the U.S. dollar have all contributed to higher copper prices. A weaker dollar has made commodities more attractive to investors, further boosting prices.
Copper prices were also influenced last year by policies announced by U.S. President Donald Trump and by supply-related risks. In July, Trump stated that the U.S. could impose a 50% tariff on copper imports, pushing prices above $5.90 per pound at the time.
Additionally, an accident at Freeport-McMoRan’s Grasberg mine in Indonesia disrupted supply, adding upward pressure on prices.
Green Energy, AI, and Infrastructure Drive Demand
Copper remains one of the most critical materials for the green energy transition, alongside silver. Rising investments in artificial intelligence, ongoing global infrastructure projects, and increasing demand from electric vehicles (EVs) and power grid modernization continue to support copper consumption.
Heavy metal shipments into the U.S., driven by tariff concerns, have raised fears of supply shortages in Asia and Europe, further tightening the global market.
Despite ongoing concerns about China’s economy, demand from the United States, Europe, and India is expected to remain strong. Copper is also widely used in the defense industry, adding another layer of structural demand.
U.S. Trade Policies Add to Supply Pressures
Copper prices once again tested record highs early this year, fueled by expectations that the U.S. may raise import tariffs. These concerns have encouraged exporters to ship more copper to the U.S., increasing supply tightness elsewhere.
Meanwhile, labor strikes at Chile’s Mantoverde mine have added to supply uncertainty. On the demand side, expectations that solar panel manufacturers may scale up large-scale production—using copper-intensive components—have further strengthened demand outlooks.
Years of underinvestment and operational disruptions in mining have contributed to the current price surge, with U.S. policy uncertainty acting as a key catalyst.
Analyst: Copper Demand Expected to Keep Rising
Commodity and futures markets analyst Zafer Ergezen said copper demand is expected to continue rising due to structural supply-demand dynamics.
Ergezen highlighted that copper is one of the commodities with particularly strong demand from China, noting:
“The rapid growth in electric vehicle demand, especially as Chinese automakers gain significant global market share, along with rising renewable energy investments worldwide, has been one of the main drivers of copper demand. For this reason, an upward move in copper prices was already expected.”
He also pointed to interest rate cut expectations as a major factor:
“As markets expect rate cuts to continue, forecasts of economic recovery—especially in China—have strengthened. This increases expectations for higher industrial metal demand, particularly copper.”
Silver Rally Also Boosts Copper
Ergezen added that rising expectations for industrial metals were first reflected in silver and platinum prices, and that copper has now moved to the forefront.
“Silver prices have risen sharply, and as a result, previously lagging metals such as copper have come into focus. Combined with global economic recovery expectations, trade tariff risks, and a declining dollar index, these factors support further upside in copper.”
He concluded by stating:
“I expect the upward trend in copper prices to continue throughout 2026.”
Source: Patronlar Dünyası/ Prepared by: İlayda Gök