Copper Prices Reach Record $12,000 a Metric Ton as Market Navigates Supply Constraints and Growing Demand Outlook

, reflecting the confluence of tightening global supply and sustained optimism for long-term demand. This milestone came late in a year marked by trade uncertainties and mounting pressure on the global copper supply chain. .

A significant factor pushing prices upward has been the redirection of copper supplies toward the United States in anticipation of potential import tariffs. This shift has created a global supply imbalance, contributing to heightened market tension. Additionally, unexpected mine outages and increasing demand for copper in have reinforced the upward trajectory of prices. Investors have shown strong interest in copper-related assets, even amid ongoing production challenges in the sector.

Recent developments in the ore supply contract negotiations further underscore the strain on the copper market. Annual talks concluded with a historic low for smelters, who received zero dollars per ton for processing fees. This has forced some smelters to reduce operations or shut down entirely, compounding concerns over the availability of refined copper on major exchanges. With margins under pressure, industry players are bracing for further disruptions that could exacerbate existing supply constraints.

Looking ahead, forecasts for 2026 remain bullish. Citigroup Inc. , driven by the continued redirection of metal to the U.S. market. Goldman Sachs Group Inc. has also positioned copper as a top metal for 2026, reflecting confidence in its strategic importance and market fundamentals.

At the close of trade, . Other base metals also showed gains, signaling broader strength across the industrial metals complex.

The market’s current dynamics highlight a clear divergence between short-term supply limitations and long-term demand expectations. As the and digital transformation continue to gain momentum, copper is likely to remain a focal point for investors and industrial users alike.