Copper prices climbed toward $13,000 per metric ton as a weakening U.S. dollar and escalating trade tensions over Greenland tariffs boosted demand speculation. The rally lifted related mining equities and commodity indices across global markets.
- Copper prices approached $13,000 per metric ton
- U.S. Dollar Index declined 1.8% during the period
- New Greenland tariffs sparked supply chain concerns
- First Quantum Minerals (LQMF) up 6.3%, Lundin Mining (LUN) up 5.1%
- XME and SLW ETFs rose 4.7% and 3.9%
- Copper contributed 40% of daily gains in BCOM index
Copper futures approached $13,000 per metric ton in early trading, marking a significant milestone in a volatile week driven by shifting macroeconomic and geopolitical dynamics. The surge coincided with a 1.8% drop in the U.S. Dollar Index, reducing the cost of dollar-denominated commodities for foreign buyers and increasing demand pressure on base metals. The momentum gained traction following the announcement of new U.S. tariffs targeting mineral exports from Greenland, a key Arctic region with growing strategic importance for rare earths and copper-rich deposits. Though not yet in force, the proposed measures have triggered supply chain concerns among global traders, prompting speculative buying in copper markets. The move signals a broader trend of resource nationalism in critical mineral sourcing. The rally extended to related equities, with shares of major mining firms rising: First Quantum Minerals (LQMF) jumped 6.3%, while Lundin Mining (LUN) gained 5.1%. The VanEck Junior Gold Miners ETF (XME) and the Market Vectors Silver Miners ETF (SLW) also saw gains of 4.7% and 3.9%, respectively, reflecting broader investor appetite for resource plays. Commodity indices tied to industrial metals, including the Bloomberg Commodity Index (BCOM), registered a 2.4% weekly uptick, with copper accounting for nearly 40% of the daily gains. Analysts note that sustained prices above $12,800 could signal a structural shift in the copper cycle, supported by growing demand from electric vehicle manufacturing and renewable energy infrastructure projects in Asia and Europe.