Copper Price Climbs to Fresh High on China Demand Outlook

Copper Price Climbs on Strong China Outlook

Copper prices surged again amid global supply concerns and strong demand signals from China. London Metal Exchange futures climbed 1.3% to $11,771/ton, surpassing previous records. U.S. stockpiling ahead of potential tariffs also contributed to tight supply. The rally reflects a combination of geopolitical, industrial, and fiscal factors impacting the global copper market.

The latest price surge follows China’s announcement to prioritize domestic growth in 2026. This proactive fiscal policy supports industrial metals demand, including power-grid upgrades, computing infrastructure, and electric vehicles. Analysts from Cofco Futures describe the momentum as “very bullish” for copper. Investors anticipate sustained growth and strong industrial consumption in China next year.

Meanwhile, refined copper supply is tightening worldwide. Citic Securities warns that the global shortfall could reach 450,000 tons in 2026. Prices must average over $12,000/ton to attract sufficient investment in new mining capacity. Recent mine outages and supply constraints further pressure the market, fueling continued gains.

Factors Driving Copper Prices Higher

Global demand from electric vehicles, data centers, and renewable infrastructure underpins copper’s 34% gain on the LME this year. U.S. stockpiling in anticipation of tariffs added to short-term pressure, while China’s growth plan enhances long-term fundamentals. Analysts expect these combined factors to maintain upward price momentum.

U.S. and China Influence on Copper Markets

In the U.S., Comex prices previously hit record highs in July due to tariff concerns. Simultaneously, China’s proactive fiscal strategy provides additional demand support, highlighting a global imbalance between supply and industrial needs. This dynamic ensures copper remains a focal point for investors and manufacturers worldwide.

SuperMetalPrice Commentary:

Copper’s rally underscores the interplay of geopolitical policy, industrial demand, and supply constraints. With China signaling robust growth and the U.S. stockpiling supplies, prices are likely to remain elevated. Investors and producers must monitor global supply trends, tariffs, and mining capacity to gauge mid- to long-term copper market stability.