Copper prices rose to a record high on Friday and were on track for a third consecutive weekly gain, bolstered by top consumer China’s promise of fiscal boost next year and the U.S. Federal Reserve’s interest rate cut and balance sheet expansion.

The most-traded copper contract on the Shanghai Futures Exchange HG1! closed daytime trade higher 1.95% at 94,080 yuan ($13,335.03) per metric ton. It hit a new high at 94,570 yuan, surpassing the previous record hit on Monday.

Benchmark three-month copper HG1! on the London Metal Exchange was up 0.13% at $11,887 a ton, as of 0726 GMT after touching a record high at $11,952 in afternoon trading.

So far this week, the SHFE and LME benchmarks have gained 1.4% and 1.9%, respectively.

Boosting sentiment was a readout by state news agency Xinhua of the annual Central Economic Work Conference held on December 10-11 that showed pledges by Chinese leaders to maintain a “proactive” fiscal policy in 2026.

Market sentiment also got a boost after the Fed trimmed rates by 25 basis points on Wednesday and said it would begin buying short-dated government bonds on Friday. The restart of bond buying will once again expand the Fed’s balance sheet.

The record-breaking run of copper used in power, construction and manufacturing comes as mine supply disruptions and massive outflows of copper to the United States have fanned concerns over a shortage ex-U.S.

ANZ Research expects copper prices to remain above $11,000 per ton in 2026, with prices potentially nearing $12,000 by year-end amid supply constraints and accelerating demand growth.

SHFE tin FTIN1! gained more than 5% to hit a 44-month high at 338,800 yuan a ton, supported by fears of supply disruptions.

SHFE aluminium ALI1! advanced 0.8%, zinc ZNC1! climbed 2.45%, while nickel NICKEL1! nudged down 0.15% and lead LEAD1! dipped 0.67%.

Among other LME metals, aluminium ALI1! edged down 0.19%, nickel NICKEL1! was little changed, lead LEAD1! shed 0.25%, and zinc ZNC1! lost 0.2% while tin FTIN1! gained 1.67%.
Source: Reuters