Copper Pulls Back from Record Highs Near $12,000 Amid Cautious Global Demand Outlook

Copper prices saw a slight decline during Tuesday trading after touching all-time highs near $12,000 per ton in the previous session, as investors assessed the future trajectory of the metal following a strong multi-month rally.

Copper reached a record $11,996 per ton on the London Metal Exchange on Monday before easing by 0.1% to $11,918 per ton during Asian trading. Despite this modest pullback, prices are still set for their largest annual gain since 2009.

Copper, a key component in the global energy transition, is benefiting from growing expectations of a supply deficit next year, along with substantial flows of the metal to the United States, which have depleted inventories elsewhere and supported global prices.

Despite improved risk appetite in markets recently, some analysts warn that actual global demand remains relatively weak, noting that the current momentum is driven more by supply-side factors and macroeconomic shifts.

Asian market analysts highlighted that the price surge lacks strong support from industrial demand and may persist in the near term due to psychological factors and market expectations rather than improved consumption fundamentals.

More broadly, industrial metals have continued their positive performance this year, with aluminum, zinc, tin, lead, and nickel prices all on track for annual gains. In contrast, iron ore futures in Singapore fell by 0.7% to $104.5 per ton during Tuesday trading.