Market News

(Bloomberg) -- Copper edged towards $12,000 a ton, nearing a new all-time high as supply setbacks and tariff-related trade dislocations fuel a powerful, months-long rally.

The metal seen as a bellwether for the global industrial economy traded 0.4% higher on the London Metal Exchange, nearing an all-time high of $11,996 a ton struck on Monday. Prices are up by about 37% this year, on course for the biggest annual gain since 2009.

Sentiment on copper has benefited from a broader rally in risk assets in recent days, but the underlying driver has been expectations for large volumes of metal to keep flowing to the US, draining inventories elsewhere. Still, there have been more cautious voices pointing out that global demand remains relatively soft.

“The current rise in copper prices lacks demand support and is primarily driven by macroeconomic factors and supply-side dynamics,” CCB Futures Co. analyst Zhang Ping said in a note. But prices are “expected to continue rising, fueled by market sentiment.”

Industrial metals have enjoyed a strong year, with aluminum, zinc, tin, lead and nickel also on course for annual gains. Aluminum reached its highest intraday level since the aftermath of Russia’s invasion of Ukraine in 2022 on Monday, and was flat on Tuesday.

LME copper was 0.4% higher at $11,973 a ton as of 10:02 a.m. local time, as all metals rose on the exchange. Aluminum was up 0.6%, while nickel rose 1.8%.

--With assistance from Mark Burton.