2025.12.2312:56:48UTC+00Copper Extends Rally to 5-Month High

In late December, copper futures in the United States climbed to $5.5 per pound, marking the highest level since July when U.S. President Trump's tariff threats propelled futures to a record $5.8. This increase is driven by ongoing concerns about supply. President Trump reiterated his intentions to impose tariffs on key industrial metals, announcing upcoming duties on commodity-grade copper, an addition to the existing 50% tariffs on semi-finished copper products. The announcement led to a decline in U.S. contracts, as the tariffs did not extend to broader copper grades such as cathodes, anodes, and concentrates. A decrease in mined output further fueled this month's rally. Notably, Freeport-McMoRan's Grasberg mine in Indonesia, which supplies 3% of the world's copper, halted operations following a fatal accident. Additional production slowdowns are anticipated in Chile and Peru due to ongoing protests. Consequently, Chile's state-owned miner, Codelco, has offered record-high prices to Chinese buyers, compelling Chinese smelters to agree to zero treatment charges for the upcoming year.