Burhan Sansarlioglu and Gokhan Ergocun
06 January 2026•Update: 06 January 2026
ISTANBUL
Copper hit a record high of $6.06 per pound on international markets amid supply concerns.
Last year's rally in prices carried over into this year. The Fed interest rate cuts, declining real interest rates and reduced demand for the dollar have fueled the rise in prices.
Copper was particularly affected last year by US President Donald Trump's policies and supply concerns.
After Trump announced in July that he would impose a 50% tariff on copper imports, the price rose above $5.90.
The accident at the Grasberg mine in Indonesia, owned by US-based Freeport McMoran, also negatively affected copper supply, causing prices to rise.
Copper, like silver, is a product in demand in the green energy sector. Improved global growth expectations and increased AI investments are supporting copper prices.
Continued global infrastructure investments are positively affecting base metals, with copper demand particularly standing out. The continued heavy flow of metals to the US has increased concerns about supply shortages in other regions.
Increased investment in electric vehicles and the renewal of global electricity grids are ensuring that copper demand remains strong.
Demand from the US, Europe and India is expected to continue, despite concerns about the Chinese economy.
Copper is also used in the defense industry.
- Uncertainty affects prices
The price of copper per pound rose to $6.06 in international markets in the new year, testing its all-time high amid supply concerns.
Concerns that the US may increase customs tariffs are triggering the rise in prices.
There are also concerns that more copper will be shipped to the US due to tariff concerns. This is causing supply problems in Asia and Europe.
The start of strikes at the Mantoverde mine in Chile emerged as another factor contributing to increased supply concerns for copper.
On the other hand, predictions that companies producing in the solar energy sector could switch to large-scale production of panels using base metals such as copper also point to demand for the metal.
Years of insufficient investment and disruptions in mining activities have caused copper prices to rise, while uncertainty about US policies is contributing to the current increase.
Zafer Ergezen, an expert in futures and commodity markets, told Anadolu that copper demand is expected to increase in the coming period within the framework of supply and demand balance.
Ergezen said copper is one of the commodities in high demand in China.
"The recent increase in demand for electric vehicles globally, and especially the fact that Chinese automakers have achieved a significant market share in electric vehicles, along with the increase in renewable energy investments around the world, were among the most important factors driving copper demand.
"Therefore, an upward movement in copper was expected," he said.
Ergezen said one of the reasons for the strong movement was expectations of interest rate cuts.
"With interest rate cuts expected to continue, this has brought to the fore forecasts that the global economies, especially China, will recover and orders will increase.
"This brought with it the expectation that copper demand would increase, or more accurately, that demand for industrial metals would come to the fore," he said.
- Excessive appreciation of silver causes copper to rise
Ergezen said the expected rise in industrial metals is also seen in the increase in silver and platinum prices, leading to increased demand for more industrial metals such as copper.
He emphasized that silver prices have risen significantly, bringing products such as copper to the forefront.
Ergezen stated that copper is expected to be positively affected by the recovery expectations in global economies.
"That's why we are seeing this recovery in copper prices. Of course, there are also concerns about Trump's tariff war and tariffs in global trade in general. Here, prices are generally backed. We see the dollar index declining," he stressed.
He added that the decline in the dollar index leads to appreciation against the dollar for products such as copper produced in countries like Chile.
"When we put all this together, it increased the upward trend in copper. I expect the upward trend in copper to continue throughout 2026," added Ergezen.
