LONDON: Global copper prices surged to a record high on Tuesday as fresh disruptions at major mining operations intensified concerns over tight supply, while nickel prices climbed to a 14-month peak on expectations of reduced output from Indonesia. The rally reflects growing pressure on global metal markets at the start of 2026, driven by structural supply constraints and rising demand from energy transition industries.
Benchmark three-month copper on the London Metal Exchange (LME) rose as much as 3.1 percent during the session to reach an all-time high of $13,487.50 per metric ton. By mid-morning trading in London, copper was up 0.9 percent at $13,101 a ton. The metal has already gained around 5.6 percent this year, after posting a massive 42 percent increase in 2025, and crossed the $13,000 mark for the first time on Monday.
Market analysts attribute the rally to a widening gap between supply and demand. According to ING analyst Ewa Manthey, years of underinvestment in new mining projects, combined with ongoing disruptions at existing mines, have left the copper market with limited flexibility. At the same time, demand continues to accelerate due to increased spending on electrification, renewable energy, electric vehicles, and data centres.
Supply concerns were further heightened by a strike at Capstone Copper’s Mantoverde copper and gold mine in northern Chile, one of the world’s most important copper-producing regions. In addition, Chinese producer Tongling Nonferrous has reported delays in the expansion of its Ecuadorian mine, adding to fears of prolonged shortages.
Inventories also point to a tightening market. LME copper stocks have fallen to 142,550 tons, their lowest level since mid-November. While copper inventories on the Comex exchange in the United States have been rising amid speculation over potential U.S. import tariffs, supply remains tight in other regions, particularly Europe and Asia.
Nickel prices also posted strong gains, rising 5.8 percent to $17,980 per ton, their highest level since October 2024. The surge followed news that Indonesia, the world’s largest nickel producer, is tightening control over mine output. Indonesian authorities are allowing miners to operate under previously approved 2026 quotas until the end of March, while new quotas are reviewed, effectively slowing supply growth.
While the short-term outlook for nickel has improved, analysts caution that a sizeable surplus is still expected later in 2026 unless deeper production cuts are implemented or global demand strengthens significantly.
Other industrial metals also advanced. Aluminium rose 0.7 percent to $3,107.50 per ton, touching its highest level since April 2022. Zinc gained 1.3 percent to $3,237 after hitting its strongest level since October 2024, while lead climbed 1.4 percent to $2,051.50. Tin recorded one of the biggest moves, jumping 3.9 percent to $44,015 after earlier rising more than 7 percent to its highest level since March 2022.
The broad-based rally underscores renewed momentum in the metals market as supply risks and long-term demand trends reshape global pricing dynamics.
