Copper hovers near record high on weaker dollar and supply outlook

LONDON: Copper prices rose on Tuesday, hovering near record highs hit in the previous session, with thin year-end trade extending momentum for speculative buying on a weaker dollar and worries about tighter supply.

Benchmark three-month copper on the London Metal Exchange was up 0.4% at $11,971 a metric ton by 0957 GMT. It hit a record high of $11,996 on Monday.

Heading for the biggest annual gain since 2009, copper is up 36% this year after mine supply disruptions, outflows of stocks to the U.S. and bets that demand for copper will benefit from the green energy transition.

From the point of view of global supply, there is no shortage of the metal. The International Copper Study Group estimates that the market had a surplus of 122,000 tons for the first 10 months of the year.

However, copper has been flooding into the United States, tightening availability in traditional consuming centres on the prospect of President Donald Trump placing an import tariff on refined copper from 2027.

Exports of refined copper from top metals consumer China surged in November to their second-highest monthly level on record, with more than a third of shipments bound for the United States.

Goldman Sachs expects the copper price to consolidate in

2026 and average $11,400, with tariff uncertainty lingering.

Under the bank’s base case scenario prices will edge down in the second half of 2026 and early 2027 once the U.S. starts to run down its stockpiles.

Among other LME metals, nickel jumped 1.7% to $15,530 a ton after touching $15,545 for its highest since October 9 on bets that Indonesia could reduce mine output in 2026.

Aluminium added 0.5% to $2,957 a ton, zinc gained 0.9% to $3,112.50, lead was up 0.9% at $1,988 and tin rose 0.7% to $43,400.