Copper surged at its fastest pace in 16 years on Thursday, posting its biggest jump since 2009 as aggressive buying from China sent prices sharply higher.
Prices leapt as much as 10.1% to above $14,400 a tonne, after breaking through the $14,000 mark for the first time earlier in the session on the London Metal Exchange.
The industrial metal, which is critical to electrical appliances, power grids and electric vehicles, is now up around 25% since the start of December. The rally has been fuelled by growing concerns over a looming global supply shortage, driven by accelerating demand linked to electrification and the transition to net zero.
Traders point to a mix of stop-loss buying and options-related activity amplifying the move. At the same time, growing uncertainty around Donald Trump’s increasingly erratic foreign policy stance is pushing investors towards real assets, with industrial metals emerging as a key beneficiary.
Tariff concerns continue to pull copper into the US to take advantage of elevated premiums, tightening availability elsewhere. That dynamic has left Asian markets short of inventory and added upward pressure on prices.
China has also stepped up imports, with December arrivals rising 2.3% month-on-month to 437,000 tonnes, underscoring robust underlying demand. The copper market remains tight after significant volumes flowed into US exchanges, exacerbating shortages in Asia.
Looking ahead, any further escalation in tensions between the US and China could increase stockpiling behaviour, potentially driving base metals higher still. Commodity trading advisers (CTAs) are also seen adding momentum, contributing to the strength across the complex.
