Copper prices surged to a fresh all-time high on Tuesday as mounting supply disruptions and uncertainty surrounding potential US trade tariffs intensified an already strong rally in base metals at the start of the year.
Benchmark three-month copper on the London Metal Exchange (LME) climbed 1.8% to $13,225 per tonne during official open outcry trading. Earlier in the session, prices jumped as much as 3.1%, reaching a record peak of $13,387.50 per tonne. Copper is now up approximately 6.6% so far in 2026, after breaking through the $13,000 mark for the first time on Monday. The metal posted a stunning 42% gain in 2025, underscoring its powerful upward momentum.
The rally extended across the base metals complex, with nickel prices also advancing. Nickel rose above $18,000 per tonne, its highest level in nearly 15 months, supported by Indonesia’s ongoing restrictions on mine output.
According to Albert Mackenzie, copper analyst at Benchmark Minerals, the current price surge has been building since late 2025, when copper recorded its largest annual dollar increase in at least a decade. Much of that momentum was concentrated in December, when prices jumped roughly 14%, propelling copper rapidly past the $12,000 and $13,000 thresholds within weeks.
Supply-side risks remain a central driver of the rally. A strike at Capstone Copper’s Mantoverde copper-gold mine in northern Chile has revived concerns over production disruptions, while China’s Tongling Nonferrous has reported delays to the second phase of its Mirador mine in Ecuador, where ongoing conflict has complicated development.
Beyond immediate supply issues, longer-term demand expectations are also supporting prices. Analysts point to accelerating investment tied to artificial intelligence, electrification, and the global energy transition, all of which are expected to significantly increase copper consumption in the years ahead.
Market participants are also closely watching US trade policy. Renewed rhetoric around the possibility of copper tariffs has reportedly prompted material to be redirected into the United States, disrupting global supply flows and adding further upward pressure on prices.
However, the speed and magnitude of the rally are beginning to raise questions among some traders. Mackenzie notes that as prices continue to climb, debate is intensifying over whether speculative inflows and market sentiment may be outpacing underlying fundamentals. While supply constraints and structural demand trends remain broadly supportive, the sustainability of current price levels is increasingly under scrutiny.
