Copper records biggest annual gain since 2009 on supply bets

Group 1: Market Performance - Copper experienced its best year since 2009, rallying 42% on the London Metal Exchange, making it the top performer among six industrial metals [1] - Prices reached a record high of $12,960 per ton before settling at $12,558.50, reflecting a 1.1% decrease on the last trading day of 2025 [6] Group 2: Supply Dynamics - Anticipation of potential US tariffs on primary copper has led to over 650,000 tons of copper entering the US, creating tightness in supply outside the US [3] - Recent supply constraints have been exacerbated by accidents at major mines, including a deadly incident in Indonesia and a flood in the Democratic Republic of Congo [4] Group 3: Demand Outlook - The near-term outlook for copper demand is uncertain due to weakness in China, the largest consumer, where the property market downturn has reduced the need for copper [5] - Long-term demand for copper is expected to grow significantly, with BloombergNEF projecting a consumption increase of over one-third by 2035, driven by the shift to cleaner energy and electric vehicles [6]