Copper soared to a record high while nickel jumped more than 10 per cent to a 19-month peak on Tuesday as supply concerns fueled gains in industrial metals.
Benchmark three-month copper on the London Metal Exchange was up 1.9 per cent at US$13,234 a metric ton, having earlier climbed by as much as 3.1 per cent to a record US$13,387.50. Nickel, meanwhile, was up 9.2 per cent at US$18,570 after touching US$18,785 for its highest since June 5, 2024.
Copper has already gained about 6.5 per cent in 2026, crossing US$13,000 for the first time on Monday. Nickel is up 30 per cent since December 16.
“Copper’s move above US$13,000 is being driven by a growing imbalance between structurally tight supply and accelerating demand from electrification and data center investment,” said ING analyst Ewa Manthey. “Years of underinvestment and ongoing mine disruptions have left the market with little buffer.”
A strike at Capstone Copper’s Mantoverde mine in Chile has renewed supply concerns, while China’s Tongling Nonferrous has reported a delay to the launch of its Ecuadorian mine’s second phase.
Citigroup on Tuesday raised its bullish first-quarter copper price target to US$14,000, from US$12,000 previously, but left its base-case forecast for the remainder of the year unchanged at US$13,000. “We are tactically bullish copper for the coming weeks,” the bank said in a note.
Nickel’s rapid climb comes as Indonesia, the world’s biggest nickel miner, plans to cut ore output.
The move “is proving highly effective at lifting prices in the short term,” Manthey said. “But with a sizeable surplus still expected in 2026, the rally is unlikely to last unless supply curbs deepen or demand meaningfully improves,” she added.
Aluminum rose 1.6 per cent to US$3,135 a ton, touching its highest since April 2022, while zinc was up 1.8 per cent at US$3,252 after striking its highest since October 2024 and lead climbed 2.6 per cent to US$2,076.
Tin was also carried higher as markets were firmly in risk-on mode, rising 5.5 per cent to US$44,655 and notching its highest level since March 2022.