Copper pushed to record territory on Thursday as a broad-based rally in industrial metals gathered pace, underpinned by investors' appetite for physical commodities amid geopolitical uncertainty and a softer U.S. dollar.
On the Shanghai Futures Exchange, the most-active copper contract climbed 6.35% to 108,740 yuan a metric ton as of 03:30 GMT, after hitting an intraday high of 109,570 yuan a ton earlier in the session. In London, the benchmark three-month copper contract on the London Metal Exchange advanced 6.63% to $13,953.50 a ton as of 03:50 GMT, having reached a record $13,967 a ton, up 6.73% on the day.
The Shanghai contract has gained nearly 9% year-to-date, while the London benchmark is up more than 11% so far this year. Those moves follow a record-setting rally in 2025 that market participants attribute to supply concerns, including mine disruptions and regional dislocation amid U.S. tariff threats.
Traders said copper's recent strength has been reinforced as capital rotated away from earlier strong rallies in gold and silver. Those precious metals had set records after investors sought physical assets in response to heightened geopolitical risks, including a public statement on Wednesday in which U.S. President Donald Trump threatened Iran of possible attacks if it did not strike a deal on nuclear weapons.
U.S. monetary policy developments also played a role. The dollar steadied after the Federal Reserve chose on Wednesday to leave interest rates unchanged, but it remained near recent lows. A weaker dollar tends to support commodities priced in dollars by making them cheaper for investors holding other currencies, which can boost demand.
Notably, the gains in copper came even as indicators of immediate Chinese demand remained subdued. The Yangshan copper premium, a widely watched gauge of Chinese appetite for imported copper, fell to $20 a ton on Wednesday, its lowest level since July 2024.
Aluminium markets were also firm. The most-active aluminium contract on the Shanghai Futures Exchange rose 3.08% to 25,630 yuan a ton, while the London benchmark advanced 1.87%.
Other Shanghai-traded base metals posted gains as well: zinc climbed 2.78%, lead added 0.88%, nickel rose 1.12% and tin increased 0.65%. On the London Metal Exchange, zinc surged 2.62%, lead rose 1.29%, nickel gained 2% and tin was up 1.54%.
Economic calendar - Thursday, January 29 (GMT)
- 10:00 - EU Consumer Confidence, final for January
- 11:00 - France Unemployment Class-A SA, December
- 13:30 - US International Trade, November
- 13:30 - US Initial Jobless Claims for the week ending Jan 24
- 15:00 - US Factory Orders, month-on-month, November
($1 = 6.9473 Chinese yuan renminbi)