Copper Soars to 16-Year High: Supply Woes, AI Demand Fuel Record Rally

• Copper prices hit a 16-year record, crossing $12,000 per ton on the London Metal Exchange, with a 40% annual gain in 2025.
• Supply disruptions from fatal accidents in Indonesia, underground floods in Congo, and rock blasts in Chile significantly tightened global copper availability.
• Fears of potential US import tariffs led traders to front-load shipments, exacerbating supply shortages in other global markets.
• Strong demand from power grids, clean energy infrastructure, manufacturing, and the AI industry is boosting copper consumption.
• Other base metals like Aluminum, Zinc, and Tin also saw significant gains in 2025, with Tin surging 47%.

Why It Matters: Copper prices surged to a 16-year high driven by critical supply shortages and robust demand, especially from AI.