Copper Price Plummets in New York Following Record High in London Amid Volatile 2025
December 29, 2025 – MINING.COM Staff Writer
Copper prices experienced dramatic fluctuations on Monday as the metal surged to new heights in London before plunging sharply in New York trading. This volatility capped a turbulent year for copper, marked by significant mine outages, geopolitical trade tensions, and fluctuating demand patterns that resulted in the metal achieving its most substantial annual gain since 2009. ### London Sees Copper Surge to Nearly $13,000 per Tonne
In early London trading, copper prices jumped as much as 6.6%, reaching around $13,000 per tonne ($5.92 per pound). This rise was the largest one-day spike since 2022 and reflected continued tight supply conditions coupled with strong speculative interest. By mid-afternoon, prices retracted slightly but still traded about 1.6% higher than previous levels, reinforcing copper’s status as a critical industrial commodity.
Sharp Correction in New York Futures
While London markets enjoyed gains, New York copper futures suffered a sharp downturn, tumbling by as much as 6%. This decline erased the gains made on Friday and occurred while the London Metal Exchange (LME) was closed for the day. As of the latest trading, March delivery copper on the CME was priced at $5.56 per pound ($12,260 per tonne), down from early session peaks.
Drivers of Copper Price Volatility in 2025
Copper’s price swings over 2025 can be attributed to several interlocking factors:
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Supply Disruptions: Across major copper-producing regions in the Americas, Africa, and Asia, a series of accidents and operational setbacks significantly curtailed output. Notably, a fatal accident at Indonesia’s Grasberg mine—the world’s second-largest copper mine owned by Freeport McMoRan—led to a force majeure declaration and steep cuts for 2026 production. Full output restoration is now anticipated only by 2027. – Other Major Incidents: In May, an underground flood at Ivanhoe’s Kamoa-Kakula mine in the Democratic Republic of Congo (DRC) and a deadly rock blast at Chile’s El Teniente mine in July further constrained global copper supplies. These mines were expected to bolster copper production substantially prior to the incidents.
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Trade and Tariff Concerns: Speculation over potential US tariffs on copper imports, potentially driven by then-President Donald Trump’s trade policies, sparked a surge in US-bound shipments. This “front-loading” of imports intensified global demand competition, as manufacturers worldwide scrambled for available supply despite softening demand in China—the largest copper consumer, accounting for approximately half of global use.
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Investment and Project Delays: Developing new copper projects has grown increasingly challenging due to slow permitting processes and escalating costs, exacerbating supply concerns. Analysts emphasize copper’s essential role in the global transition towards renewable energy and artificial intelligence, sectors that are highly copper-intensive.
Outlook: Tight Copper Markets and Price Volatility to Continue in 2026
Looking ahead, the copper market faces ongoing strain. BloombergNEF’s Transition Metals Outlook 2025 warns that copper demand linked to the energy transition could triple by 2045. Without significant investment in mining and recycling, global shortages could reach 19 million tonnes by 2050. Kwasi Ampofo, head of metals and mining research at BloombergNEF, highlighted that the projected copper market imbalance is the result of rapidly rising demand colliding with slow project delivery timelines.
Given these dynamics, market participants expect continued volatility and price swings in copper throughout 2026, as tariff uncertainties, supply vulnerabilities, and robust green-energy demand interplay.
Key Commodity Prices on December 29, 2025:
- Copper: $5.735 per pound (up 2.88%)
- Brent Crude Oil: $61.71 per barrel (up 0.77%)
- Palladium: $1,721.5 per ounce (up 1.68%)
- Natural Gas: $4.133 per Btu (up 4.71%)
- Silver Futures: $75.7 per ounce (up 5.6%)
- Aluminum Futures: $2,959.25 per ton (up 0.66%)
- Platinum: $2,250.6 per ounce (up 4.75%)
- Gold Futures: $4,399.1 per ounce (up 1.12%)
For ongoing market updates and in-depth analysis, visit MINING.COM.
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