Copper Hits $13,000/ton as Dollar Weakens and Geopolitical Tensions Boost Metals

Copper prices surged above $13,000 a ton on the London Metal Exchange (LME), reaching a 3.4% gain to $13,187.50, nearing all-time highs. The rally extended to nickel and tin, with gains of nearly 5% and 9.7%, respectively. A weaker US dollar, driven by geopolitical uncertainty under President Donald Trump and renewed Fed criticism, fueled investor rotation away from currencies and bonds. The metal market’s strength was further supported by supply disruptions, rising demand from electrification, and increased shipments to the US ahead of potential tariffs. Spot copper traded at a $66.06 discount to the LME three-month contract, indicating improving supply conditions in a contango market structure. Meanwhile, Chinese smelters boosted exports to LME warehouses, capitalizing on profitable arbitrage trades earlier this year amid higher benchmark prices compared to domestic rates. Industrial metals across the board advanced as deliveries eased pressure on buyers following a recent squeeze. Traders expect more deliveries in the coming weeks, though current arbitrage opportunities are limited. Copper settled at $13,187.50 a ton on the LME, while other industrial metals also rose.