Copper Slips in Final 2025 Session Amid Profit-Taking but Records Biggest Annual Gain Since 2009

New York | EcoPulse24

Copper futures declined by more than 1% in the final session of 2025, trading near $5.7 per pound, as investors engaged in year-end profit-taking following a strong rally in recent months.

Despite this retreat, copper is on track for its largest annual gain since 2009, emerging as the best-performing base metal in 2025. This performance is underpinned by a combination of supply constraints and strong global demand tied to structural shifts in the world economy.

Strong Performance on the London Metal Exchange

On the London Metal Exchange (LME), benchmark three-month copper prices edged down to around $12,538 per metric ton, yet remain on course for annual gains exceeding 43% - one of the strongest years in the metal’s history.

These gains have pushed copper through several key price levels throughout the year, amid a market environment characterized by tight supply and growing long-term demand.

Supporting Factors: Energy Transition, AI, and Supply Disruptions

Copper’s rally was fueled by rising demand linked to the global transition to clean energy and expanding investment in AI infrastructure and data centers, sectors that heavily rely on copper for power and connectivity networks.

On the supply side, the market faced clear pressures due to mining disruptions, including the temporary closure of Freeport-McMoRan's Grasberg mine in Indonesia, which further tightened global supply and supported price increases.

EcoPulse24 Analysis

From EcoPulse24’s perspective, the recent dip in copper prices reflects a natural technical correction after an exceptional year of gains, rather than a fundamental shift in the market’s direction. The underlying drivers remain robust, with the global energy transition and accelerating AI and digital infrastructure investments supporting structural demand for copper.

Looking ahead to 2026, copper is expected to remain sensitive to supply-side developments, including geopolitical risks and production challenges, as well as global growth trends and monetary policy. If supply constraints persist alongside growing industrial demand, copper may maintain elevated price levels, though short-term volatility is likely due to profit-taking and financial market movements.