22.12.202508:41:33UTC+00Copper Climbs Near 5-Month High

Copper futures have surged to approximately $5.5 per pound, marking their highest point in nearly five months. This increase is driven by persistent supply constraints and optimism surrounding long-term infrastructure demand, both of which continue to bolster prices. The London Metal Exchange (LME) is poised for its most significant annual gain since 2009, fueled by ongoing disruptions in mining operations and historically low treatment and refining charges. These factors highlight the tension within the copper concentrate market. Supply anxieties escalated following an agreement between Chilean mining company Antofagasta and a Chinese smelter to set processing fees for 2026 at zero, marking the lowest level ever seen in annual negotiations. Further constraining supply are outages at major mines and a lack of new project development. Additionally, copper is gaining support from its expanding use in power grids, data centers, and cooling infrastructure linked to AI investment. Meanwhile, anticipation of potential US tariffs has led to pre-emptive stockpiling, thereby tightening the material's availability.