Copper Prices Technical Outlook: Copper prices record high January 2026

Introduction

Copper prices have continued to climb to historic highs, surpassing USD 13,000 per metric ton, driven by tight supply and the expectation that geopolitical tensions will intensify global competition for critical minerals. Additional support has come from concerns that copper—classified as a strategic and essential industrial metal, particularly for advanced technology sectors—could become subject to US trade measures under President Donald Trump.

Copper prices on the London Metal Exchange rose above USD 13,180 per metric ton, marking a strong start to 2026 following an exceptional previous year in which prices climbed from an average of around USD 7,500 to above USD 12,000 per metric ton.

Key Drivers Supporting Copper Prices

1. Artificial Intelligence Continues to Support Demand

Despite earlier forecasts by major global financial institutions that copper prices would stabilize in 2026, the ongoing artificial intelligence boom has provided sustained support for the metal. The rapid expansion of large-scale data centres—highly power-intensive—has significantly boosted demand for copper, which remains the most efficient electrical conductor.

2. Renewable Energy and Green Technologies

Electric vehicles remain among the most copper-intensive technologies, particularly in batteries and internal vehicle components. This trend contributed to an average 40% increase in copper prices over the past year, reinforcing the metal’s central role in the global energy transition.

3. Tight Supply Conditions

Several copper mines faced structural challenges over the past year, most notably the disruption at Indonesia’s Grasberg mine, one of the world’s top 10 copper producers. In addition, infrastructure-related issues at multiple ageing mines led to lower output after years of operating at full capacity. These constraints have increased the need for higher prices to incentivize mining companies to expand production significantly.

According to Citi analysts, global refined copper production reached approximately 27 million tons in 2024, resulting in a supply shortfall of around 308,000 tons relative to global demand.

4. Rising Geopolitical Tensions

Uncertainty has increased following recent geopolitical developments that emerged in the early days of the new year, particularly amid concerns that US President Donald Trump could impose restrictions on this strategically sensitive industrial metal.

5. China’s Demand Outlook

While there is currently no concrete data pointing to a rebound in Chinese copper demand—despite China being the world’s largest consumer and the third-largest producer—the government’s plans to stimulate the economy and revive the property and infrastructure sectors suggest that any recovery in demand could significantly widen the supply-demand gap, potentially pushing copper prices even higher.

Technical Analysis of Copper Prices

Copper Price Movements - TradingView

Copper prices have broken through a long-term resistance level at 5.30, generating strong upside momentum. As long as prices remain above this level, the bullish trend is expected to continue according to Analysts.