Copper futures advanced more than 3% to around $5.7 per pound in late December, extending gains to a five-month high as global markets reacted to strong demand and supply constraints. The metal continues to benefit from the global energy transition, contributing to its 42% annual gain in New York. Prices were further supported by a recent slump in the US dollar, which made raw materials more affordable for international buyers, while concerns persist over potential US tariff reviews in 2026, raising the risk of supply tightness for global markets. Structural demand for copper remains robust, driven by long-term trends in electric vehicles, renewable energy projects, power grid expansion, and AI infrastructure development. In China, prices rose 2.7% to $14,090 per ton as top copper smelters once again declined to set first-quarter 2026 processing fee guidance, reflecting ongoing feedstock shortages and record-low processing charges.
