Beijing: Copper prices reached a new record on Wednesday as investors moved into metals because of rising geopolitical tensions and a weaker United States dollar.
On the Shanghai Futures Exchange, copper climbed more than six percent and traded above 109000 yuan a tonne during the session. In London, copper also touched a fresh high close to 14000 dollars a tonne.
Traders said the rally was driven mainly by financial investors looking for safer assets at a time of global uncertainty. The weaker dollar made commodities cheaper for buyers using other currencies, which also supported prices.
Other industrial metals followed copper higher. Aluminium, zinc, lead, nickel and tin all gained as part of a wider metals rally seen in recent days. Precious metals such as gold have also surged to record levels, showing strong demand for physical assets.
However, signs from China suggest that real demand from factories remains weak. China is the world’s biggest copper consumer, but the premium paid for imported copper has fallen to its lowest level since mid 2024. This shows that buyers are cautious despite high prices.
Analysts say supply concerns are another factor behind the rise. Some major mines have faced disruptions, and inventories outside China remain tight. At the same time, long term demand is expected to grow because copper is needed for electric vehicles, renewable energy projects and data centres.
Market experts warn that prices could remain volatile. While global risks and a soft dollar are supporting metals for now, weaker industrial demand could limit further gains.
For the moment, copper is benefiting from strong investor interest, even as physical buyers stay careful.