Copper prices jump 8% to hit new high; metal set to log biggest annual gain since 2009; factors behind stellar rally

On the Multi Commodity Exchange (MCX), copper futures for December delivery jumped ₹93.35, or 8.07%, to hit a record of ₹1,249.95 per kg. The January contract climbed ₹105.5, or 9%, to touch a lifetime high of ₹1,277.95 per kg.

Over the past five sessions, copper prices have rallied 12.43%, or ₹138.25, from ₹1,111.70 per kilogram recorded on December 18.

Copper in international market

In the international markets, Comex copper futures were trading 3.8% higher at $5.78 per pound. Meanwhile, copper prices on the London Metals Exchange (LME) hit an all-time high of $12,282.40 per tonne before settling at $12,116.65 per tonne on Wednesday.

"Comex copper futures climbed to around $5.5 per pound, hovering near a five-month high, supported by tight global supply conditions and robust US economic data, with the economy expanding at its fastest pace in two years in Q3," said a PTI report that quoted a research note.

Strong consumer spending, exports, and industrial activity continued to underpin demand from copper-intensive sectors, it added.

Copper prices: YTD returns & reason behind the sharp rally

So far this year, copper prices have rallied by more than 35% and are poised for their biggest annual gain since 2009, supported by rising demand from technology and energy transition sectors and tariff-related uncertainties.

Market experts noted that global copper prices have surpassed the $12,000-per-tonne mark on the LME for the first time and will continue to march higher on the bourse.

They attributed the current surge to supply challenges in major producing regions such as Chile and Indonesia, where environmental disruptions and operational issues have contributed to a tighter global market.

Goldman Sachs on copper

Looking ahead, Goldman Sachs Research said copper prices will decline somewhat in 2026 from their recent record highs, even as demand from the grid and power infrastructure gradually drives prices higher in the longer term.

"Next year, it expects the LME copper price to remain in a range of $10,000-$11,000, as strong global demand growth from the grid and power infrastructure, backed by investment in strategic sectors such as AI and defence, keeps prices from falling below $10,000," it added.

The investment bank forecasts the LME copper price to average $10,710 in the first half of 2026 and to reach $15,000 per tonne by 2035 in the longer term.

India copper market size & outlook, 2025-2030

Grand View Research, a business consulting firm, in its report, says that the copper market in India is expected to reach a projected revenue of US$ 38,314.1 million by 2030. A compound annual growth rate of 7.2% is expected of the Indian copper market from 2025 to 2030.

The Centre for Social and Economic Progress (CSEP), an independent, public policy think tank, in its report on copper in August 2025, said that copper lies at the heart of the energy transition as a critical component for transforming the Indian economy, from the power grid and electric vehicles (EVs) to construction and advanced manufacturing.

Moreover, as India focuses on simultaneously achieving accelerated economic growth and a green transition, the growth in demand for copper is bound to intensify.

In India, the report added, projections indicate copper demand will increase significantly, reaching 3.24 million tonnes by the fiscal year (FY) 2030 within the conventional sectors, with construction, industrial, and electricity primarily dominating copper usage.

Additionally, the energy transition sector, although currently smaller, is expected to experience rapid growth, with demand projected to reach 274 thousand tonnes by FY 2030.