Copper Climbs Toward Record High Amid Supply Constraints and Dollar Weakness

Copper futures on the London Metal Exchange reached $10,850 per metric ton on January 11, 2026, marking a 7.2% increase year-to-date and nearing the all-time high of $10,940 set in 2022. The rally was accelerated by reports of reduced output at major mining operations in Chile and Congo, where rainfall delays and labor disputes have disrupted extraction activities. At the same time, the U.S. dollar index dropped below 102.5, making dollar-denominated commodities more affordable for foreign buyers and increasing international demand. The imbalance between global supply and rising infrastructure investment—particularly in China’s electric vehicle sector and renewable energy projects—has tightened physical metal availability. According to industry trackers, global copper inventories held at LME warehouses declined by 12.3% in December 2025, reaching their lowest level since mid-2023. This decline reflects growing concerns over long-term supply sustainability amid escalating environmental regulations and slower exploration timelines. Major consuming nations, including India and Germany, have reported increased procurement activity, with Mumbai-based wholesale traders noting a 22% spike in spot trades for copper rods and bars during the first two weeks of January. Electric vehicle manufacturers in Southeast Asia have also placed bulk orders, signaling robust demand in downstream sectors. Analysts project that the price could test $11,000 if supply constraints persist beyond Q1 2026.