Copper Reaches Record High as Supply Concerns Override Dollar Strength
Copper achieved record highs on Wednesday with Shanghai futures reaching 105,650 yuan and London benchmark touching $13,400 per ton, driven by mine disruptions and supply concerns. Tin also surged dramatically, hitting upper price limits in Shanghai at 413,170 yuan and reaching $52,495 in London. Geopolitical tensions and strategic copper movements to the U.S. ahead of potential tariffs supported the rally despite headwinds from dollar strength.
*this image is generated using AI for illustrative purposes only.
Copper prices surged to unprecedented levels on Wednesday, establishing new record highs on both major exchanges as supply-side concerns proved more influential than headwinds from a strengthening dollar. The rally extended to tin, which also achieved record peaks amid speculative buying driven by escalating geopolitical uncertainties.
Shanghai and London Markets Hit New Peaks
The copper market demonstrated remarkable strength across global exchanges, with significant price movements recorded throughout the trading session.
| Exchange & Contract | Price Level | Daily Change | Record High |
|---|---|---|---|
| Shanghai Futures Exchange | 104,970 yuan/ton | +1.68% | 105,650 yuan |
| London Metal Exchange (3-month) | $13,367.50/ton | +1.55% | $13,400/ton |
The Shanghai contract reached its all-time high of 105,650 yuan ($15,046.44) per metric ton during the session before settling at the closing level. Meanwhile, the London benchmark briefly touched $13,400 per ton before retreating slightly by 0340 GMT.
Supply Disruptions Drive Market Sentiment
Copper's price resilience stems from multiple supply-side factors creating tightness in global markets. Mine disruptions have contributed to concerns about potential deficits this year, while strategic movements of copper to the U.S. ahead of potential tariffs have further constrained supply availability in other regions. These fundamental supply concerns have provided strong support for prices despite currency headwinds.
Geopolitical Tensions Boost Commodity Appeal
Geopolitical developments added another layer of support to commodity markets. President Trump's Tuesday statements urging continued Iranian protests heightened concerns over geopolitical risks, prompting investors to seek exposure to commodities with strong underlying fundamentals. Analysts noted this shift toward copper and tin as safe-haven plays amid mounting uncertainty.
Tin Achieves Dramatic Record Surge
Tin markets experienced even more dramatic movements, with both Shanghai and London exchanges recording substantial gains.
| Exchange | Peak Price | Daily Surge | Status |
|---|---|---|---|
| Shanghai Futures Exchange | 413,170 yuan | +8.00% | Hit upper price limit |
| London Metal Exchange | $52,495 | +5.00% | New record high |
The Shanghai tin contract's 8% surge was so significant it triggered the exchange's upper price limit, while London tin's rally exceeded 5% to establish a new record.
Broader Base Metals Rally
The positive sentiment extended across the base metals complex, with all major metals posting gains on both exchanges despite dollar strength.
Shanghai Futures Exchange Performance:
- Aluminium: +1.12%
- Nickel: +1.47%
- Lead: +0.20%
- Zinc: +1.05%
London Metal Exchange Performance:
- Aluminium: +0.75%
- Nickel: +1.83%
- Lead: +0.07%
- Zinc: +1.22%
The broad-based gains across the metals complex indicate strong underlying demand fundamentals, though the stronger dollar provided some resistance to more substantial price advances. Currency effects typically make dollar-priced commodities more expensive for buyers using alternative currencies, creating natural price constraints.
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