Copper surged to a record in Shanghai and rallied in New York, adding to substantial annual gains as investors bet on tighter global supplies next year, while factoring in the impact of a weaker US dollar.
In China, prices gained as much as 4.7 percent to trade near 100,000 yuan (US$14,228) a tonne on the Shanghai Futures Exchange for the first time. Futures traded on the Comex in New York climbed as much as 5.6 percent to US$5.8075 a pound, the highest intraday level since an unprecedented short squeeze in July. Benchmark trading on the London Metal Exchange is to reopen on Monday after the Christmas break.
Copper’s latest rise on Friday came as precious metals climbed, with gold, silver and platinum all surging to record highs in a powerful end-of-year rally that has dominated global commodity markets.
Spot gold rose as much as 1.6 percent to a peak above US$4,540 an ounce on Friday.
Spot silver for immediate delivery advanced for a fifth session, climbing as much as 7.6 percent to cross US$77 an ounce.
Metals have made big gains this month, rounding off a year in which trade dislocations, geopolitical uncertainties and supply shocks have combined to shake up the industry.
On the demand side, copper is expected to be a major beneficiary of the world’s energy transition, helping to make it one of biggest winners this year, with a gain of roughly 42 percent in New York.
Earlier this year, Comex copper contracts spiked to a record in anticipation that US President Donald Trump would impose tariffs. While he ultimately excluded the most widely-traded form of the commodity from levies, that decision is due for a review next year. A continued rush of metal into the US has spurred concerns buyers elsewhere might end up scrambling for supplies.
Prices received an additional lift in recent sessions from a slump in the US dollar, with the Bloomberg Dollar Spot Index, a key gauge of the US currency’s strength, was down 0.7 percent last week, its biggest drop since June. That shift makes raw materials cheaper for most buyers.
On the Comex, copper rose 4.7 percent to settle at US$5.8395 in New York on Friday.
