LME copper prices surged to record highs as strong global demand, tight supply, and renewed fund inflows boosted market sentiment. Analysts expect continued volatility as fundamentals and investment trends align in favor of the red metal.
Copper futures in the US fell to $5.09 per pound from the three-month high of $5.17 touched October 29th, as a stronger dollar and the uncertain demand outlook momentarily outweighed mounting concerns of tight supply.
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Copper Price Hits Record High
Copper price from London Metal Exchange reached an all-time high of $11,200 per metric ton on Wednesday. Many reasons, both big and small, are making the copper price go up. Fund managers are buying copper again, adding strength to the price rise.
Why Funds Are Buying Copper Again
Investment funds started buying copper long positions again after March. This was after many tariffs created uncertainty and dropped copper prices earlier. Now prices are going up as production from big mines is lowering. Fund managers increased their long contracts from 55,325 in August to 87,152 contracts.
Supply Problems Adding Pressure
There were many accidents in copper mines this year. Experts say this could lead to less refined copper in 2026. Low copper stocks also stop investors from betting on prices falling. For example, cash prices went very high compared to 3-month prices earlier this month.
Trade Tensions and Price Effects
A possible trade war between the U.S. and China made copper price uncertain. But recent talks between President Trump and President Xi eased some worries. However, the price is still changing daily because of trade news.
What Investors Should Watch
Even though copper’s supply and demand look positive, trade conflict risk remains high. Investors should watch copper prices closely as news about tariffs or trade talks can quickly change the market.
FAQs:
1. Why did LME copper prices hit record highs?
Copper prices surged due to strong investment fund activity, robust industrial demand, and tight global supply conditions.
2. What factors are influencing copper demand in 2025?
The rise in electric vehicle production, renewable energy expansion, and infrastructure projects worldwide are key drivers of copper demand.
3. How do fund flows impact copper prices?
Large investment funds often influence commodity prices by amplifying buying momentum, especially when fundamentals support a bullish trend.
4. What is the outlook for LME copper in the coming months?
Analysts expect continued strength in copper prices, though profit-taking and macro
5. How can investors trade LME copper?
Investors can trade LME copper through futures contracts, ETFs, or by gaining exposure to mining companies involved in copper production.