Copper prices surged by the most in over 16 years, extending a powerful start to 2026. Intense speculative trading in China pushed metals markets sharply higher.
The rally drove copper to fresh record highs amid concerns over tight supply and rising strategic demand. Growing fragmentation across global markets has added further pressure.
Data from the London Metal Exchange showed prices jumping more than 5% in less than an hour during early Asian trading. This time window often sees strong participation from Chinese investors.
Copper’s surge also lifted precious metals. Gold and silver recorded solid gains as momentum-driven buying spread across the complex.
Why Copper Prices Are Rising
The current rally builds on a strong 2025, when copper prices climbed nearly 44%. That marked the metal’s best annual performance in more than a decade.
Analysts say the move reflects a structural repricing of copper. Supply disruptions, persistent deficits, and long-term demand growth continue to outpace new production.
Copper surged by the most in more than 16 years as metals extended a dramatic start to the year fueled by a wave of intense speculative trading in China https://t.co/X9DiqTUOVK
— Bloomberg (@business) January 29, 2026Mine supply has declined more sharply than expected. Years of underinvestment, falling ore grades, and long development cycles have limited the industry’s ability to respond.
Inventories have also become more fragmented. Trade tensions and policy uncertainty have tightened supplies outside the United States, despite stable headline stock figures.
Demand patterns are shifting toward strategic uses that show less sensitivity to price swings. Rapid growth in AI data centres, power grid upgrades, defence spending, and electrification projects has created steady demand.
Read: Gold Surges Past $5,500 as Investors Rush to Safe Havens
At the same time, traditional cyclical sectors such as construction face slower growth. This divergence has reshaped the copper market. Speculative demand has amplified these trends, particularly in China. Investors there have shown growing interest in hard assets amid currency concerns, geopolitical risks, and de-dollarisation.
A weaker US dollar has added further support. The currency move has made copper cheaper for buyers using other currencies, reinforcing upward price pressure.
