Copper prices in India extended their winning streak for a sixth consecutive session on Monday, December 29, registering a sharp surge. The key industrial metal climbed as much as 7.72% to reach ₹1,376.05 per kilogram in futures trading on the Multi Commodity Exchange (MCX). This rally follows a previous high of ₹1,249.95 per kg recorded on Friday.
Global Markets Mirror the Rally
The bullish momentum was not confined to domestic markets. Internationally, copper breached the significant $13,000-per-ton mark on the London Metal Exchange (LME) in a striking year-end surge. After a two-day holiday in the UK, trading resumed with the metal jumping up to 6.6% to $12,960 a ton. On the Comex exchange in New York, copper futures advanced 1.2% to $5.908 a pound, building on a 5% gain from the previous session.
What's Fueling the Copper Boom?
The latest upswing caps a remarkable year for copper, shaped by a confluence of powerful factors. The rally is primarily attributed to major unplanned mine disruptions and a severe strain on global smelting capacity, tightening physical supply. Adding a significant layer of uncertainty are the trade policies of US President Donald Trump.
Market participants are on edge as President Trump is anticipated to decide on import tariffs for refined copper by mid-next year. Expectations that these tariffs will be imposed have already pushed US prices above LME levels. This has triggered pre-emptive stockpiling, with large traders shipping substantial volumes of copper to the US to avoid future duties, drastically reducing stockpiles in other parts of the world.
Investment Outlook: Growth Metal or Overheated?
With prices skyrocketing, the critical question for investors is whether it's the right time to enter the market. Copper is on track for its strongest annual performance since 2009, driven by robust demand from technology, electric vehicles, AI data centers, and renewable energy infrastructure.
Justin Khoo, Senior Market Analyst for APAC at VT Market, provided his perspective: "Tight mine supply, disruptions, and pre-emptive stockpiling amid trade uncertainty have collided with structurally rising demand from electrification and AI. Copper is a direct proxy for real economic activity. Its outlook remains constructive, but volatility will be higher. Investors should treat it as a growth allocation, not a hedge, with disciplined position sizing."
Looking ahead, Goldman Sachs Research expects prices to ease from recent peaks in 2026 but sees long-term support. The firm forecasts the LME copper price to trade between $10,000 and $11,000 next year, underpinned by strong demand from grid and power infrastructure investments linked to strategic sectors like AI and defence.
Disclaimer: This story is for educational purposes only. The views and recommendations above are those of individual analysts or broking companies. Investors are advised to consult certified experts before making any investment decisions.
