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Copper prices surged toward a record high on the London Metal Exchange (LME) on Monday, buoyed by renewed optimism over a potential trade deal between the United States and China, easing concerns that have weighed on global commodities in recent months.
Copper’s sustained strength underscores its critical role in the green transition, where rising investment in electric vehicles, renewable power grids, and energy storage continues to bolster consumption outlooks despite cyclical market fluctuations.
According to Access Bank Daily Market Commentary, “copper prices climbed toward an all-time high as optimism grew over a potential US-China trade deal, which removes the threat of 100 percent tariffs and pauses China’s rare earth export restrictions for a year.”
The red metal rose as much as 0.9 percent to US$11,065.50 per ton, nearing its May 2024 record of US$11,104.50, supported by ongoing mine disruptions in Indonesia and the Democratic Republic of Congo.
Market analysts noted that the rally was being reinforced by a weaker US dollar and robust long-term demand driven by the global shift toward clean energy and electrification.
“The metal’s rally reflects both near-term trade optimism and structural demand growth,” the Access Bank commentary observed, highlighting forecasts by major miners such as BHP, which projects a 70 percent increase in global copper demand by 2050.
Other base metals also posted gains, with aluminum and zinc benefiting from the improved sentiment.
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