Copper prices hit a record high in trading on Wednesday, boosted by hopes of a truce in the U.S.-China trade war, but also amid supply concerns due to setbacks impacting major producers.
Copper hit $11,143 per ton on the London Metal Exchange due to concerns about tight global supply as a major mine in Indonesia remains shut following a deadly mudslide last month.
The new high beat the record of $11,104.5 a ton in May 2024. The value of the key industrial metal is up more than 25% this year.
"The prospects of a trade agreement between the U.S. and China provided the main boost" to Wednesday's record, noted Commerzbank analyst Thu Lan Nguyen.
U.S. President Donald Trump voiced optimism for advancing toward major trade deals with Beijing and Seoul, on the eve of Thursday's crucial talks in South Korea with Chinese leader Xi Jinping.
Copper demand has exploded in recent years, with the metal needed for solar panels, wind turbines, electric-vehicle batteries and consumer electronics.
The metal is also used in military hardware, including aircraft, while there is growing demand linked to the boom in artificial intelligence and data centers.
"The energy transition combined with increased demand for (AI) power ... have become major supportive drivers of demand," Saxo Bank analyst Ole Hansen told Agence France-Presse (AFP).
"In China, it has offset a slowdown in demand towards construction, historically a major driver of copper demand."
