Copper Has Gained Most Among Six Industrial Metals on the LME in 2025
One industrial metal which has just recorded its longest winning streak since 2017, with eight consecutive days of gains on the London Metal Exchange (LME), is copper. The LME copper futures were up 0.4% to $9,267 per tonne by the close of trading on Friday (17 January), and have cumulatively risen by 1.9% over the past week.
After closing up 2.4% cumulatively for the whole of 2024, copper prices have risen by around 6% so far in 2025. This has not only made copper the best performing of the six industrial metals on the London Metal Exchange, but has also sparked widespread investor interest.
Behind the rise in copper prices, the challenges facing the global supply chain have become a factor that cannot be ignored, including natural disasters and strikes, which have led to constraints on mining and production at some copper mines in 2024, as well as the slow progress of a number of new mining projects, resulting in a tight supply of copper in the market. This has created strong support for the already rising copper prices.
In addition, a key factor in determining copper prices is from China, the largest copper consumer. Data released by China’s National Bureau of Statistics (NBS) on 17 January showed that China’s gross domestic product (GDP) grew by 5% in 2024, achieving the government’s target. More importantly, this means that China’s growth is among the highest of the world’s major economies and continues to be a key driver of world economic growth.
Copper, as an important industrial metal, is required in large quantities, both for the rebound in the construction sector and for the development of electric vehicles and clean energy industries. In China, large-scale infrastructure investments and the clean energy transition have accelerated copper consumption. According to the International Copper Council (ICA), China’s copper demand is expected to continue to grow in 2025, which is a strong support for the rise in global copper prices.
On a quarterly basis, China’s GDP grew by 5.3 per cent year-on-year in the first quarter, 4.7 per cent in Q2, 4.6 per cent in Q3 and 5.4 per cent in the fourth quarter. The fourth quarter saw the fastest pace of growth for China’s economy in the past six quarters and exceeded economists’ median forecast.
China’s industrial production and retail sales were also better than expected, and the rate of decline in house prices slowed in December, reflecting signs of stabilisation in the real estate sector, which has been the backbone of demand for industrial metals such as copper and steel, according to a report from the statistics bureau.
Industry insiders point out that the main reason for copper’s outperformance in 2025 is that China is showing signs of demand recovery. Meanwhile, market sentiment has played an equally important role. As central banks around the world roll out loose monetary policies, the low interest rate environment has prompted investors to look for assets that can fight inflation. Copper, as a key industrial metal, has naturally become a highly sought-after investment target.
Among other metals on the LME, zinc prices rose 0.7% on Friday, while aluminium prices rose 0.2%. Iron ore prices jumped 5.7% this week, their best week since October last year, as Friday’s data showing China’s steel production stayed above 1 billion tonnes for a fifth straight year, which boosted market confidence.
China News
Copper
Industrial Metals
Interest Rate