Core Viewpoint - Copper prices have surged to record levels in both Shanghai and New York, driven by expectations of tighter global supplies in 2026 and the impact of a weaker US dollar [1][6]. Price Movements - In China, copper prices increased by as much as 4.7%, reaching approximately 100,000 yuan ($14,270) per ton on the Shanghai Futures Exchange for the first time [2]. - In New York, Comex futures rose by up to 5.6%, hitting $5.8075 per pound, marking the highest intraday level since a significant short squeeze in July [2]. Market Trends - The recent rise in copper prices coincided with a broader rally in precious metals, including gold, silver, and platinum, which also reached record highs [3]. - December has seen substantial gains in metals, influenced by trade dislocations, geopolitical uncertainties, and supply shocks, with copper expected to benefit significantly from the global energy transition [4]. Future Outlook - Copper is projected to be one of the biggest winners in 2025, with an anticipated gain of approximately 42% in New York [4]. - The potential review of US tariffs on copper in 2026 could impact market dynamics, as earlier spikes in prices were linked to tariff anticipation [5]. Currency Impact - Recent price increases have been supported by a decline in the US dollar, which is on track for its largest weekly loss since June, making raw materials cheaper for most buyers [6].