Copper prices surged to a record $11,200 per metric tonne this week, marking a third consecutive monthly gain, driven by supply constraints and aggressive hedge fund positioning, before easing slightly on dollar strength.
Market Milestone
On Wednesday, 29 October 2025, copper futures on the London Metal Exchange (LME) reached a nominal record of $11,200 per metric tonne, surpassing the previous high of $11,104.50 set in May 2024 discoveryalert.com.au IndexBox. The rally reflects a potent mix of tight global supply, robust industrial demand, and speculative momentum, earning copper renewed attention as a bellwether for economic health—hence its nickname, “Doctor Copper.”
Supply-Side Pressures
Major producers including Glencore and Anglo American have reported significant output shortfalls in 2025, citing operational disruptions and lower-than-expected yields at key sites such as Collahuasi in Chile discoveryalert.com.au IndexBox. These constraints have amplified concerns over long-term supply security, particularly as copper remains critical to green energy infrastructure, electric vehicles, and semiconductor manufacturing.
Hedge Fund Activity
The rally was further fueled by hedge funds increasing their net long positions to an eight-month high, according to market data. This speculative buildup has intensified price volatility, with copper up over 27% year-to-date discoveryalert.com.au.
Dollar Strength Caps Gains
Despite the midweek peak, copper prices eased toward the weekend, pressured by a stronger U.S. dollar, which makes dollar-denominated commodities more expensive for non-U.S. buyers. Analysts say the dollar’s rebound, driven by hawkish Federal Reserve signals, could limit near-term upside for copper.
Outlook
While short-term corrections are expected, analysts at Goldman Sachs and Citigroup maintain bullish long-term views, citing structural demand growth and underinvestment in new mining capacity.
Sources:
1. Discovery Alert – Copper Price Rally Hits Record
2. IndexBox – Copper Hits $11,200 Amid Supply Strains
