Copper prices climbed to record levels on Thursday, leading a broad-based rally across industrial metals, as investors increased exposure to physical assets amid rising geopolitical uncertainty and continued weakness in the U.S. dollar.
The most actively traded copper contract on the Shanghai Futures Exchange closed the daytime session up 6.71% at 109,110 yuan ($15,708.77) per metric ton. Earlier in the session, prices jumped as much as 8.53% to an all-time high of 110,970 yuan per ton. On the London Metal Exchange, the benchmark three-month copper contract also posted strong gains, rising 6.32% to $13,913.50 per ton by 07:00 GMT, after briefly surging 7.94% to a record peak of $14,125.
Year to date, Shanghai copper has advanced around 9%, while the LME benchmark is up more than 11%, extending a powerful rally that began in 2025. That earlier surge was driven by supply concerns linked to mine disruptions and regional dislocations, compounded by threats of U.S. tariffs.
Market participants said copper has been benefiting from a rotation out of gold and silver following their recent sharp gains. On Thursday, copper’s rally followed fresh record highs in precious metals, as investors sought refuge in physical assets after U.S. President Donald Trump warned Iran of possible military action if it failed to reach an agreement on nuclear weapons.
Although the U.S. dollar steadied after the Federal Reserve left interest rates unchanged on Wednesday, it remained close to recent lows. The softer dollar has supported dollar-denominated commodities by making them cheaper for holders of other currencies, helping to stimulate demand.
The strength in copper came despite subdued spot demand in China, the world’s largest consumer. The Yangshan copper premium, a key indicator of Chinese import demand, slipped to $20 per ton on Wednesday, its lowest level since July 2024.
Elsewhere in the metals complex, aluminium prices remained firm. The most-active Shanghai aluminium contract settled 2.92% higher at 25,590 yuan per ton, while the LME benchmark rose 1.30% to $3,299.50.
Other base metals on the SHFE also advanced, with zinc up 2.91%, lead gaining 1.09%, nickel rising 1.79% and tin edging 0.28% higher. On the LME, zinc jumped 2.91%, lead added 1.44%, nickel climbed 2.49% and tin increased 1.07%.