Copper surges past $13,000/t as bull run gains pace

Copper surges past $13,000/t amid supply and geopolitical concerns

Copper prices surged past $13,000/t on the London Metal Exchange as investors sought safe-haven assets.
The three-month contract closed at $13,230/t, rising 3.04% in a single session and 5.8% since early January.
US military action in Venezuela and tight global availability drove renewed buying pressure.

Financial investors have supported copper throughout 2025 due to heightened geopolitical uncertainty.
The metal also benefited from previous central bank interest rate cuts and speculation over US tariffs.
Meanwhile, shipments to the US accelerated as traders sought to stockpile tariff-free copper.

Supply constraints remain a key driver of copper’s bull run.
Chinese smelters announced planned cuts of at least 10% in utilization rates for 2026.
Additionally, a large decline in TC/RCs between Jiangxi Copper and Antofagasta signals a near-term concentrate shortfall.

Copper surges past $13,000/t as LME stocks tighten

LME on-warrant stocks of copper fell to 114,200t on 6 January, down 27% from early December.
Chinese and Russian inventories dominate LME stocks, limiting deliverable metal for Comex traders.
As a result, global backstop supply has eroded, intensifying short-term price spikes.

Physical consumer demand is not driving the current surge, though future demand from energy transition and AI applications remains strong.
Speculative buying and supply-side risks are likely to set higher floors for any corrections.
Investors are closely watching US import flows, warehouse inventories, and Chinese smelter output for market cues.

SuperMetalPrice Commentary:

Copper’s breakout above $13,000/t underscores how supply constraints and geopolitical tensions dominate short-term pricing.
The market’s attention on US imports and Chinese smelter cuts suggests further volatility is likely.
Long-term bull trends from green energy and AI will reinforce upward sentiment whenever supply concerns flare.