Copper Records Biggest Annual Gain Since 2009 on Supply Bets

Core Viewpoint - Copper has experienced its best performance since 2009, driven by supply tightness and increasing demand for electrification applications, with a 42% rally on the London Metal Exchange in 2025 [1][3]. Group 1: Price Performance - Copper prices surged to record highs, reaching $12,960 per ton, making it the best performer among six industrial metals [1][6]. - Prices dipped by 1.1% on the last trading day of 2025 [1]. Group 2: Supply and Demand Dynamics - Anticipation of potential tariffs on primary copper in 2026 has led to over 650,000 tons of copper entering the US, creating tightness in supply outside the US [4]. - The expectation of US import tariffs has revived arbitrage trading, tightening availability in the market despite a slowdown in demand from China [3][4]. Group 3: Long-term Outlook - Despite current weakness in China's property market affecting copper demand, long-term growth in global copper consumption is expected, with estimates suggesting an increase of over one-third by 2035 [5][6]. - Key drivers for this growth include the transition to cleaner energy sources, increased adoption of electric vehicles, and the expansion of power grids [6].