40% Copper price surge since the end of 2024

      On December 23, 2025, copper prices surged to record highs (approaching $12,000/ton on the LME) driven by a severe global supply crunch from mine disruptions (like Indonesia's) and increased demand for AI/data centers, with US stockpiling adding to the squeeze, while a weaker dollar also bolstered the metal, though uncertainty remains about the long-term trend if Fed policy tightens. 

      Key Drivers for the Increase:

      Supply Shortages: Major mine outages, particularly at the world's second-largest mine in Indonesia, have significantly reduced copper ore supply.

      AI & Data Centers: The boom in Artificial Intelligence requires massive amounts of copper wiring for data centers, increasing demand.

      US Stockpiling & Tariffs: Anticipation of potential US tariffs has led to heavy stockpiling in the US, further tightening global supplies.

      Weakening Dollar: A declining US dollar makes dollar-denominated commodities like copper cheaper for holders of other currencies, pushing prices up.

      Low Processing Fees: Record low (even zero) processing fees for smelters are forcing some to cut production, adding to refined copper scarcity. 

      Market Sentiment:

      Analysts are bullish, with predictions of further price increases into 2026, potentially hitting $12,000-$13,000/ton or more, as a significant refined copper deficit is expected. 

      Context:

      Copper futures on the London Metal Exchange (LME) topped $12,000 per ton for the first time on this date, marking nearly a 40% price surge since the end of 2024.