Copper surged toward a record on concerns about tightening supplies in the new year, as well as a risk-on mood in wider markets.

Benchmark futures rallied about 3% in London, approaching the peak just below $13,000 a ton set last week. Concerns about potential US tariffs have led traders to ramp up shipments to that country, tightening conditions elsewhere. In addition, the start of a strike at the Mantoverde mine in Chile was a reminder of scope for risks to supplies at a time of expanding global demand.

All base metals were stronger on Monday, as Asian equities climbed to a record aided by bets on technology shares. More broadly, investors were assessing the wider implications of the US seizure at the weekend of Venezuelan leader Nicolas Maduro, including Washington’s evolving stance toward the resources that are central to security and economic growth.

Copper — a metal vital for the energy transition, as well as traditional uses — surged by 42% in 2025 to post the best year since 2009. Concerns about potential US import tariffs have seen exchange-tracked stockpiles in the US expand. Meanwhile, the cash-to-three month spread in London is firmly in backwardation, a pattern that points to near-term tightness.

“Overall supply shortfalls, coupled with regional dislocation caused by US tariffs, are propelling copper,” China Securities Co. analysts led by Wang Jiechao wrote in a note. The global copper market will see a shortage of more than 100,000 tons in 2026,” they said.

Three-month copper rose as much as 3% to $12,839 a ton on the London Metal Exchange, and traded at $12,823 at 10:05 a.m. a.m. in Shanghai. Among other metals, aluminum rose as much as 1.8% to $3,069 a ton, the highest since April 2022, on a tightening supply outlook and bets on long-term demand.

Elsehwere, iron ore was 0.3% higher at $105.90 a ton in Singapore.