Copper prices near all-time high: Structural shift or speculative spike? Here’s where the red metal is headed

Copper prices continue to sparkle, pushing towards lifetime highs as the red metal inches deeper into uncharted territory. On the Multi Commodity Exchange (MCX), the most-active January 30, 2026, futures contract surged over 1.3% to trade at Rs 1,330.45 per kg on Tuesday.

The rally marks a dramatic rise from a low of Rs 913.70, with lifetime highs now not far at Rs 1,392.95.

This surge follows a significant breakout on the price charts. As seen in recent price action, copper has gained momentum since early December, with a parabolic rise visible in the candlestick chart.

According to Justin Khoo, Senior Market Analyst – APAC at VT Markets, this strength isn’t fleeting but grounded in a deeper shift in the metal’s industrial relevance.

What’s fueling the rally?

According to Khoo, copper has surged to record levels above $13,000 per tonne globally, propelled by a potent combination of tight supply, significant mine disruptions, and accelerating demand from electrification, electric vehicles, AI data centers, and grid upgrades.

These factors have outpaced supply growth, with the resulting structural deficit pushing prices higher.
“Geopolitical risks are reinforcing this supply-demand imbalance,” he notes, adding that prices may oscillate in the near term due to elevated volatility.However, the broader trajectory points toward sustained strength through 2026, with price forecasts remaining elevated across analyst estimates.

What is the outlook and key levels to watch?

Khoo explains that copper’s current upswing is being underpinned by long-term structural demand, especially from sectors like renewable energy, electric mobility, and AI infrastructure.

Supply shocks, including tariff-led disruptions and underwhelming mine output, continue to inject further volatility into trade flows.

“Key levels to track include the current highs near $13,000/tonne and technical supports at major psychological price points,” Khoo says.

He adds that the outlook will remain closely tied to macroeconomic policy shifts, recovery in mine production, and trade regulations, which could define whether copper holds above these record levels or sees a pullback.

Is copper the new silver? Not quite

Despite comparisons floating around the market, Khoo dismisses the idea that copper is becoming a “new silver.”

He points out that silver derives value both as a precious metal and an industrial commodity, often seeing speculative demand during economic uncertainty. Copper, on the other hand, is being increasingly viewed through a purely industrial lens.

“Copper’s 2025 rally has been driven by real-world utility and structural transformation rather than sentiment-driven investing,” says Khoo. “It’s a growth barometer in a rapidly electrifying world—not a speculative store of value.”

As copper edges closer to lifetime highs and global prices hover at multi-year peaks, its role in the evolving energy and technology ecosystems is becoming clearer. Whether it sustains this red-hot momentum or sees corrective phases, one thing seems evident: copper has stepped out of the shadows to take center stage in the commodities playbook.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)