Copper hits $11,000 a ton for first time since May 2024

Copper prices hit $11,000 per metric ton on Thursday, a level not seen in over 16 months, as widespread disruption at mines sparks fears of a shortage of supply and attracts speculative inflows.

Benchmark three-month copper on the London Metal Exchange rose 3.1% to hit the $11,000 mark, within striking distance of its all-time high of $11,104.50 set in May 2024, before pulling back to $10,970 as of 1336 GMT.

The red metal has risen more than 21% so far in 2025, gaining momentum through strong demand, a weak dollar and falling interest rates, before a series of incidents at key copper mines, including a mudslide at Grasberg in Indonesia last month, fuelled the rally further.

The market is “seeing outside investment and doesn’t have much experience of the power of it,” said Alastair Munro, senior metals strategist at broker Marex.

Copper prices significantly impact the international market due to its widespread use in industries like construction, electronics, and renewable energy. Global demand from manufacturing and infrastructure development, particularly in China and emerging markets, affects its price. Economic growth, industrial production, and development goals in major copper-consuming countries also influence copper prices.

Copper prices are linked to other commodities like aluminum and crude oil. Changes in aluminum prices can impact copper prices, while oil price fluctuations influence copper production and transportation costs. Growth or decline in global industrial production also affects copper demand. Market speculation, investor sentiment, and global economic trends further contribute to price volatility.