Copper rose to a record on Monday after top Chinese smelters agreed to a plan to cut output in 2026 and on record-high premium offers by Codelco, the world’s biggest copper producing company.
The most-active copper contract on the Shanghai Futures Exchange HG1! closed daytime trading up 2.37% at 89,280 yuan ($12,623.54) per metric ton, after setting a record high at 89,650 yuan earlier in the session.
The benchmark three-month copper HG1! on the London Metal Exchange also climbed to an all-time high of $11,294.50 a ton, after setting a previous record on Friday.
The London copper contract was up 0.21% at $11,212.50 a ton as of 0716 GMT.
The China Smelters Purchase Team (CSPT), a group of the largest Chinese copper smelters, said on Friday that its members have agreed to cut production by more than 10% in 2026 in a bid to combat negative copper concentrate processing fees.
Traders are also factoring in bullish headlines from last week’s Asia Copper Week 2025 in Shanghai.
Chile’s Codelco, the world’s top copper producer, sought an aggressive hike in premium offers as high as $350 a ton for Chinese buyers during the week.
Premium offers to Codelco’s U.S. clients, meanwhile, also jumped above $500 a ton. Traders viewed the numbers as tailored to buyers able to tap the profitable Comex–LME arbitrage by delivering to the U.S. amid tariff uncertainties, adding to prospects of a tighter market outside the U.S.
Rising optimism that the Federal Reserve will cut interest rates in December also helped copper to set new peaks, as greater economic activity is associated with higher demand for the metal.
The U.S. Dollar DXY continued to soften, supporting the market by making commodities traded with the greenback cheaper for investors using other currencies.
Among other SHFE base metals, aluminium ALI1! rose 1.65%, zinc ZNC1! added 1.05%, lead LEAD1! nudged 0.23% higher, nickel NICKEL1! was up 0.59%, and tin FTIN1! gained 1.68%.
Elsewhere among LME metals, aluminium ALI1! was up 0.28%, zinc ZNC1! rose 0.29%, nickel NICKEL1! gained 0.48%, tin FTIN1! added 0.25% and lead LEAD1! was little changed.
Source: Reuters
