British News Agency

Despite copper futures falling more than 1% in the final session of the year to around $5.7 per pound, as investors took year-end profits after a strong rally, copper is on track for its biggest annual gain since 2009 and stands out as the best-performing base metal.

Analysts underline that copper is benefiting from supply constraints and strong demand generated by the energy transition and the expanding infrastructure for artificial intelligence and data centers, adding that the red metal’s rally could continue into next year.

On the London Metal Exchange (LME), three-month copper prices rose 1.5% on Tuesday to $12,405 per metric ton, trimming recent gains after reaching a record high of $12,960 in the previous session.

The benchmark contract, up about 41% this year, is heading for its best annual performance since 2009, when prices surged more than 140% as countries emerged from the global financial crisis.

According to analysts, copper demand is widely regarded as an indicator of overall economic health. Copper is critical to the energy transition ecosystem and plays an indispensable role in the production of electric vehicles, power grids and wind turbines.

Electrification, grid expansion and data center construction require large amounts of copper for wiring, power transmission and cooling infrastructure.

Mining disruptions, including the temporary closure of Freeport’s Grasberg mine in Indonesia, further supported the rally and helped copper surpass several key price thresholds throughout the year.