Could Copper Be Entering a New Supercycle as Prices Hit All-Time Highs?

Source: Kapitales Research

Highlights:

• Record prices: Copper surged above US$14,500 per tonne, at the time of writing, after jumping as much as 11% in a single session.
• China-led buying: Trading volumes on the Shanghai Futures Exchange hit record levels, signalling strong demand from Chinese investors.
• Structural demand: Rising use in electric vehicles, renewable energy, and AI infrastructure is driving long-term bullish sentiment.

Copper Breaks Above US$14,500 for the First Time

Copper prices surged to historic highs on Thursday, as global markets witnessed a powerful rally driven by strong demand from China and a weaker US dollar. At the time of writing, copper was trading above US$14,500 per tonne, after jumping as much as 11% in a single session, marking the highest level ever recorded for the industrial metal. The rally began during Asian trading hours before gaining further momentum in London, highlighting strong global participation in the move.

China Buying Sparks Momentum

Market analysts pointed to a sharp rise in buying activity from China as a key driver behind the surge. Trading volumes on the Shanghai Futures Exchange spiked significantly, with January already the busiest month on record, at the time of writing. Thursday also marked the second-highest daily trading volume ever, signalling intense investor interest and aggressive positioning by both institutional and retail traders.

Weaker US Dollar Adds Fuel

Another major factor supporting copper’s rise has been the softer US dollar. As the greenback weakens, commodities priced in dollars become cheaper for overseas buyers, increasing demand and pushing prices higher.Investors are also moving into tangible assets such as metals and commodities in response to increasing geopolitical tensions and changing global outlooks.

Fundamentals Support the Rally

Beyond speculative trading, strong fundamentals are also backing copper’s price strength. Demand

forecasts are improving as the global economic outlook stabilises, while long-term structural demand continues to rise. Copper is a key resource supporting the development of electric transport, renewable power, electrical networks, and AI-driven infrastructure. These sectors are expanding rapidly, placing sustained pressure on supply. Analysts say the energy transition alone could drive a multi-year increase in copper consumption, making the metal one of the most strategically important resources of the decade.

What’s Next for Copper?

At the time of writing, bullish sentiment remains strong, with investors increasingly viewing copper as a hedge against inflation and geopolitical risk. While short-term volatility is likely after such a sharp rise, many analysts believe copper could remain elevated as supply struggles to keep pace with demand, raising the possibility that the market is entering a new long-term supercycle.

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