Copper rises toward $13,000 as dollar dips on Greenland tariffs

Copper has rallied for the last five months on supply shortfalls as well as demand that’s being supported by the artificial intelligence boom, turbocharging consumption of the metal that’s used in wiring and renewable energy equipment

Copper resumed gains as the dollar weakened on President Donald Trump’s threats to impose tariffs over Greenland, and China’s economic growth met the government target.

Trump said he would slap tariffs on eight European nations — including Germany and the UK — that oppose his plan to acquire Greenland. The levies sent precious metals soaring as investors sought havens, and some of that appeared to spill over into base metals, despite the fact that US-Europe trade war would likely be negative for industrial demand.

Copper has rallied for the last five months on supply shortfalls as well as demand that’s being supported by the artificial intelligence boom, turbocharging consumption of the metal that’s used in wiring and renewable energy equipment. Frenzied buying across multiple metals in China has stoked the gains in recent weeks, while the debasement trade, where investors avoid traditional financial assets, is also helping.

“Copper is tracking silver and gold” as optimism toward metals improves, said Wu Kunjin, head of base metals research with Minmetals Futures Co.

China’s gross domestic product rose 5% last year, according to official data released Monday, despite a pronounced slowdown in recent months. However, Chinese home prices fell in December, a sign that the country’s property downturn, which has weighed on demand for metals, is far from over.

Chinese aluminum output, meanwhile, rose to a record high last year, climbing above the country’s capacity limit, according to data released Monday. Steel production fell to a seven-year low.

Copper rose 1.3% to $12,965 a ton on the London Metal Exchange as of 11:15 a.m. in Shanghai. Nickel jumped 2.6% and tin was up 2.8%, while aluminum climbed 0.8%.