What happens when one of the world’s most important metals goes on a wild roller coaster ride? The copper market in 2025 became a perfect example of how quickly things can change in the global economy.
Copper prices hit record highs in the third quarter of 2025, reaching $5.81 per pound on COMEX. Think of copper as the metal that powers our modern world – it’s in everything from electrical wires to smartphones. When its price jumps around like a kangaroo, everyone pays attention.
But then came the dramatic drop. Prices plummeted from $5.81 to $4.40 per pound by the end of July. The culprit? Uncertainty about new tariffs between the United States and China. President Trump announced a 10% tax on all Chinese imports starting February 4, 2025, which made traders nervous and sent prices tumbling.
The trade fight created some interesting situations. Chinese buyers started avoiding American copper scrap, worried about future costs. Meanwhile, a strange price gap appeared between different markets – COMEX and LME copper prices differed by $1.32 per pound, creating opportunities for smart traders.
Supply problems made everything worse. Chile produced less copper than expected, and Chinese smelters planned production cuts. Mine disasters around the world tightened supply even more, like trying to fill a swimming pool with a garden hose while someone keeps making the hose smaller. Ivanhoe Mines’ Kamoa-Kakula operations were temporarily shut in May after disruptions impacted their production capabilities. Secondary copper sources are projected to grow at 4.2% annually, significantly outpacing primary mine production rates.
By December 2025, copper bounced back to $5.25 per pound, up 28% from the previous year. The recovery happened because demand kept growing. Electric cars, data centers, and grid upgrades all need lots of copper, creating steady pressure on supplies. Smart investors recognize that building wealth involves proven strategies, not get-rich-quick schemes based on commodity speculation.
Looking ahead, experts predict things will get tighter. J.P. Morgan forecasts a 330,000 metric ton shortage in 2026, with prices potentially hitting $12,500 per metric ton. Wood Mackenzie expects copper demand to surge 24% by 2035.
Mining companies celebrated these wild swings. The STOXX Global Copper Miners index jumped 55% in 2025 as investors rushed to buy shares in copper producers. When supply is tight and demand is strong, miners usually win.
