Copper Prices Near Record Highs as US China Trade Tensions Ease

Highlights:

• Copper prices are hovering just US $100 below record highs, trading around US $11,000 per tonne at the time of writing, driven by renewed optimism in global demand.
• Easing trade tensions between the U.S. and China have lifted market sentiment, with diplomatic breakthroughs expected at the upcoming Trump–Xi summit in South Korea.
• Tight supply from major mines such as Indonesia’s Grasberg has further supported prices, reinforcing expectations that copper could soon hit fresh record highs.

Copper’s rally powered by demand hopes and tight supply

The price of copper has edged within about US $100 of its all-time record high as traders react to a thaw in relations between the United States and China. At the time of writing, three-month contracts are trading around US $11,000 per tonne, having earlier reached near US $11,094 on the London Metal Exchange.

Trade Diplomacy Boosts Sentiment

Officials from the U.S. and China have aligned a number of diplomatic wins ahead of a summit in South Korea between Presidents Donald Trump and Xi Jinping, signalling less adversarial trade relations. This easing has raised expectations of stronger global industrial demand for copper — a core input in construction, power and manufacturing.

Supply Concerns Add Fuel

On the supply front, disruptions at major mines including the Grasberg mine in Indonesia (responsible for around 4 per cent of global output) have bolstered fears of tightening availability. Combined with the demand uptick, this dynamic is reinforcing the bull case for the red metal.

Looking Ahead: What to Watch

• Rate cuts from the Federal Reserve and a weaker U.S. dollar could further boost copper, as dollar-priced commodities become cheaper for global buyers.
• China’s industrial performance, especially in September when profits rose at their strongest pace in nearly two years, suggests downstream demand may be gaining traction.
• Any slip-up in the U.S.–China trade diplomacy or further mine production issues could trigger sharp swings in market sentiment.

Bottom line: With copper hovering near record highs, the twin influences of improved trade relations and supply constraints are elevating market optimism. But the metal remains exposed to shifts in geopolitics, demand growth and production flows.

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