Copper Poised for Best Year Since 2009 After December Surge

Core Insights - Copper prices have surged to unprecedented highs above $12,000 a ton due to fears of a tighter global market in 2026, marking a nearly 40% increase this year, the largest annual jump since 2009 [1][3] - On the London Metal Exchange, prices reached an all-time high of $12,282 a ton, reflecting strong market dynamics [2] - Supply disruptions from major mines and tariff fears have contributed to the tightening of copper supplies, while robust demand from sectors like energy and artificial intelligence is expected to further increase consumption [4][3] Supply and Demand Dynamics - Significant supply risks have materialized this year, including accidents and natural disasters at major copper mines in Indonesia, the Democratic Republic of Congo, and Chile, which have negatively impacted global production [3] - Tariff concerns have prompted traders to increase shipments to the US, further tightening supplies in other regions [4] - The demand for copper remains strong, driven by the need for infrastructure development in power grids and new energy, as well as the anticipated growth in the artificial intelligence sector [4] Market Trends - All six base metals on the London Metal Exchange are projected to see annual gains, influenced by various supply-side pressures [5] - Other metals such as aluminum and tin have also experienced significant price increases, with aluminum up nearly 16% and tin jumping 48% due to supply constraints [5]