LONDON: Copper soared to an all-time high on Tuesday and nickel leapt more than 9 percent to an 18-month peak as supply concerns fuelled an early-year rally in industrial metals.
Benchmark three-month copper on the London Metal Exchange was up 2.5percent at USD13,310 per metric ton as of 1529 GMT, having earlier jumped as much as 3.1percent to a record USD13,387.50.
The metal has already climbed around 7 percent in 2026, crossing USD13,000 for the first time on Monday, following a 42percent jump last year.
“Copper’s move above USD13,000 is being driven by a growing imbalance between structurally tight supply and accelerating demand from electrification and data centre investment,” said ING analyst Ewa Manthey. “Years of underinvestment and ongoing mine disruptions have left the market with little buffer.”
A strike at Capstone Copper’s Mantoverde copper and gold mine in Chile has renewed supply concerns, while Chinese copper producer Tongling Nonferrous has reported a delay in the launch of its Ecuadorian mine’s second phase.
LME copper stocks have fallen to 142,550 tons, the lowest since November 17, while inventories on the Comex exchange continue to climb, leaving supply tight outside of the United States.
The most-traded Comex copper contract was up 1.2percent at USD6.05 per lb, or around USD13,338 per ton.
Nickel was up 9percent to USD18,530 a ton in London after hitting its highest since June 7, 2024 on Indonesia’s plans to cut mine production.
“Indonesia’s tightening grip on output, via slower … approvals and planned 2026 quota cuts, is proving highly effective at lifting prices in the short term,” Manthey said. “But with a sizeable surplus still expected in 2026, the rally is unlikely to last unless supply curbs deepen or demand meaningfully improves.”
Aluminium added 1.4 percent to USD3,129 a ton, touching its highest since April 2022, while zinc was up 1.9percent at USD3,256 after striking its highest since October 2024, and lead climbed 2.3percent to USD2,070.50.
Tin was also carried higher as markets were firmly in “risk on” mode, rising 6.9 percent to USD45,485 and notching its highest level since March 2022.
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