Crazy! Surpassing 100,000! Copper Prices Soar Today! Hitting New Highs Again!

December 29, 2025

Changjiang Spot Market

1# Copper Price: 101,290 yuan/ton, up 3,260 yuan/ton
Cyanide-Free Copper Wire (Hard): 102,450 yuan/ton, up 3,260 yuan/ton
Enameled Wire Price: 106,560 yuan/ton, up 3,260 yuan/ton
A00 Aluminum Price: 22,490 yuan/ton, up 470 yuan/ton

Guangdong Spot Market

1# Copper Price: 101,230 yuan/ton, up 3,230 yuan/ton
A00 Aluminum Price: 22,410 yuan/ton, up 470 yuan/ton
LME Copper Price: 12,873 USD/ton, up 711 USD/ton
Shanghai Copper 2602: 101,570 yuan/ton, up 3,460 yuan/ton
Shanghai Copper 2603: 101,720 yuan/ton, up 3,420 yuan/ton

Why copper prices have soared

The sharp rise in copper prices is the result of multiple factors working together, including the following key aspects:

1.Strong demand growth

New Energy Vehicle Sector: Pure electric vehicles use approximately 80–120 kilograms of copper per vehicle, which is 4–5 times that of traditional fuel vehicles. The increasing global adoption of new energy vehicles is driving a significant surge in copper demand.
AI Computing and Data Centers: The construction of artificial intelligence data centers requires substantial amounts of copper. For every megawatt of AI computing power, copper usage is more than double that of traditional data centers. Ultra-large data centers alone can use up to 50,000 tons of copper.
Grid Upgrades and Energy Transition: Upgrading aging power grids, implementing ultra-high voltage transmission projects, and building wind and solar energy facilities all require large quantities of copper as conductive materials, further boosting copper demand.

2.Supply constraints

Frequent Mining Accidents: Major copper mines in Chile, Indonesia, the Democratic Republic of Congo, and other key producing countries have reduced or halted production due to accidents such as mudslides, explosions, and mining disasters, leading to a global decrease in copper output.
Declining Ore Grades: The average copper ore grade worldwide continues to drop, increasing extraction costs per unit of production. This discourages companies from expanding output. New mine developments face long cycles and risks related to environmental and policy issues, limiting new capacity growth.
Policy Adjustments in Resource-Rich Countries: Countries like Chile and the Democratic Republic of Congo have strengthened mining regulations, promoted local resource value retention, and implemented export restrictions, affecting global copper supply.

3.Inventory and market dynamics

Regional Inventory Imbalances: Copper inventories at the U.S. COMEX exchange have accumulated significantly due to tariff expectations and arbitrage trading, while inventories at the LME and the Shanghai Futures Exchange (SHFE) have continued to decline, intensifying concerns over tight supply.
Heightened Squeeze Risks: Traders have heavily canceled LME warrants, exacerbating fears of supply shortages and further driving up copper prices.

4.Financial attributes and market sentiment

Weakening U.S. Dollar and Interest Rate Cut Expectations: Increasing expectations of Federal Reserve interest rate cuts have weakened the U.S. dollar, prompting funds to flow into hard assets like copper and enhancing its financial appeal.
Precious Metals Linkage Effect: Record-high gold and silver prices have boosted the valuation of industrial metals, making copper a key target for safe-haven and speculative investments.
Dominance of Bullish Sentiment: Over 80% of market survey samples expect copper prices to continue rising, and aggressive long positions are further amplifying price volatility.

In summary, the surge in copper prices is the combined result of structural demand growth, hard supply constraints, abnormal inventory fluctuations, and speculative financial market sentiment. This reflects the profound global transition from traditional industries to new energy and intelligent technologies.