Copper hits record high, outshining gold and silver rally

Copper is now the most talked-about metal in the global commodity market, alongside gold and silver, with prices on the London Metal Exchange (LME) hitting an all-time high.

Three factors are being cited for the surge. First, fearing a possible increase in US import tariffs, traders shipped large consignments of refined copper to the United States, sharply depleting stock in LME warehouses. Second, global mine supply has fallen, widening the gap between demand and supply. Third, rising demand from electric vehicles, artificial intelligence (AI) and data centres has pushed copper consumption to new highs.

In the international market, the three-month copper benchmark on the LME has crossed 14,500 to 14,600 dollars per metric tonne. Experts believe that persistent supply disruptions could soon push copper to the 15,000 dollar per metric tonne level.

In the domestic market, on the Multi Commodity Exchange (MCX), gold has crossed Rs 1.53 lakh per 10 grams and silver has crossed Rs 2.40 lakh per kilogram. On the same exchange, copper is currently trading at around Rs 1,387 to 1,388 per kilogram. Copper prices in the Indian market appear somewhat stable for now due to the strength of the rupee, but the long-term outlook is considered very strong.

Demand for copper is surging sharply for electric vehicles, renewable energy, the defence sector, as well as the expansion of AI data centres and power grids, and this underlying growth could continue to support prices going forward.

According to market experts, the rally in copper could continue through the remaining months of the year. On technical charts, prices remain above key moving averages, suggesting that after a period of consolidation, another sharp rally could follow.