Why did copper hit a record today?

Supply is tight after mine outages and smelter strain cut refined availability, while trade shifts pulled metal toward the US. Low inventories magnify each headline. As physical premia rose and funds added length, futures followed. Reports also point to the longest rally since 2017, which drew momentum buyers into the move.

How does a higher copper price affect US inflation?

Copper feeds into wiring, motors, HVAC, autos, and data centers. If prices stay high long enough to reset supplier contracts, some firms pass costs through. That can nudge core goods inflation, though services dominate US CPI. The larger impact is on margins for smaller manufacturers with less pricing power.

What should investors watch in LME copper now?

Focus on time spreads, canceled warrants, and warehouse stocks. A sharp backwardation and falling stocks signal tight near-term supply. Also watch the COMEX-LME arbitrage and US regional premiums. If spreads ease while price stalls, the rally may be tiring. Company guidance on surcharges and lead times offers added clues.

Is the rally sustainable into 2026?

It depends on supply recovery and demand from grids, autos, and data centers. If mines restart and smelter treatment terms improve, tightness may ease. If AI-related power projects and grid upgrades stay strong, demand can support price. Track spreads, inventories, and project news for an early read on direction.

Global Market Insights

Copper Today, December 30: Record London Spike on Supply Squeeze

ByHuzaifa Zahoor December 30, 2025December 30, 2025

On December 30, the copper price hit a record in London, extending the longest rally since 2017. A tightening copper supply crunch from mine outages, smelter strain, and tariff shifts pushed LME copper higher. For US investors, the copper price matters for manufacturing costs, inflation signals, and equity values tied to electrification and AI power demand. Today’s spike raises key questions on durability, hedging, and which stocks may benefit or face pressure as we move into early 2026.