LONDON: Copper soared to an all-time high on Tuesday as supply concerns fuel an early-year rally, while nickel notched a 14-month peak near $18,000 with Indonesia’s mine output curbs supporting prices.
Benchmark three-month copper on the London Metal Exchange rose as much as 3.1% to $13,487.50 a metric ton and was up 0.9% at $13,101 a ton as of 1030 GMT. The red metal has already climbed around 5.6% in 2026, crossing $13,000 for the first time on Monday, following a 42% leap last year.
“Copper’s move above $13,000 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 northern 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 amid the prospect of a U.S. copper tariff, leaving supply tight outside of the United States.
Nickel gained 5.8% to $17,980 a ton, hitting its highest since October 8, 2024 on Indonesia’s plans to cut output. The country is allowing miners to refer to previously-approved 2026 quotas until end-March while new quotas are under review.
“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 0.7% to $3,107.50 a ton, touching its highest since April 2022, while zinc was up 1.3% at $3,237 after striking its highest since October 2024, and lead added 1.4% to $2,051.50.
Tin gained 3.9% to $44,015, after earlier rising as much as 7.4% to its highest level since March 2022.
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