Copper’s explosive rally is capturing investor attention as a wave of geopolitical pressure, economic stimulus, and electrification tailwinds collide. Trump’s renewed trade agenda and China’s aggressive growth strategy are fuelling a price breakout that’s reigniting one of the year’s hottest commodities.
Copper prices have soared 27% year-to-date, making it one of the top-performing assets of 2025. Futures climbed to $5.15 per pound last week on COMEX—just shy of the May 2024 all-time high—before a minor retreat to $5.12 in Monday’s Asian session. This rally is being driven by a potent mix of supply constraints, political uncertainty, and surging demand linked to the global energy transition and AI-fuelled infrastructure growth.
The backdrop is shifting rapidly. Copper’s critical role in electric vehicles, grid modernisation, and next-gen technologies is intensifying demand. Yet the supply side remains under pressure, plagued by years of underinvestment and strained refining capacity. These structural issues have collided with near-term catalysts—Trump’s looming tariff threats, China’s aggressive stimulus roadmap, and a weaker US dollar—all amplifying bullish sentiment.
Trump’s recent executive order to probe copper imports as a matter of national security sparked fresh urgency in the market. The White House cited overreliance on foreign supply chains, particularly China, and flagged potential import duties. The move drove futures up 12% in a matter of weeks as traders priced in disruption risk and suppliers rushed to front-load US-bound shipments before any tariffs materialise. The shift could inflate US manufacturing costs, adding to the inflationary narrative already roiling markets.
Meanwhile, China’s government is pushing hard to stimulate growth, announcing an ambitious 5% GDP target and a deficit level not seen in 30 years. State media confirmed sweeping plans to boost domestic consumption, increase household income, and offer fresh subsidies, especially for childcare. Recent economic data showed a 4% rise in retail sales and above-expectation gains in industrial output and fixed-asset investment. For copper, this means a robust demand outlook from the world’s largest consumer and supplier of the metal.
Adding fuel to the fire, the US dollar’s slide has lifted all boats in the commodities space. Down 4% against G-10 currencies since January, the greenback has come under pressure amid growing trade tensions and dovish signals from the Federal Reserve. As most commodities are priced in dollars, the currency’s decline adds a further tailwind to copper’s ascent.
This multifaceted rally underscores copper’s growing strategic relevance. Between Trump’s reshoring ambitions, China’s domestic revival, and the structural boom in clean energy and AI infrastructure, copper is fast becoming a focal point for investors seeking exposure to both geopolitical shifts and transformative long-term trends.
Copper is central to the global electrification and renewable energy boom. With strong demand from EVs, AI, and infrastructure, combined with geopolitical tensions and supply shortages, copper is emerging as a strategic asset for the next decade.
Jubilee Metals Group plc (LON:JLP) is a diversified metal recovery business with a world-class portfolio of projects in South Africa and Zambia. The Company’s expanding multi-project portfolio across South Africa and Zambia provides exposure to a broad commodity basket including Platinum Group Metals, chrome, lead, zinc, vanadium, copper and cobalt.
