2026-01-06 14:22:55

The recent performance of industrial metals has been quite fierce. Copper prices directly broke through the $13,000 per ton mark, and the London Metal Exchange Index (LMEX) also hit a new all-time high—what does this mean? It surpassed the wave in 2021. Remember those days? Post-pandemic economic restart, global metal shortages, and prices soaring high. Now it’s broken again.

LMEX tracks aluminum, copper, zinc, lead, nickel, and tin on the London Metal Exchange. Over the past quarter, this index’s total return actually exceeded that of gold. This from another perspective shows that the appeal of basic industrial metals is indeed rising.

What are the main drivers behind the price surge? The key factor is the expectation that the US may reimpose tariffs to protect domestic industries. This expectation is so strong that copper inventories in the US have surged, while inventories on the London Metal Exchange have decreased. The increase and decrease reflect market concerns over supply.

However, the demand side is a bit complicated. Industrial demand for basic metals remains strong, which is not an issue. But in China, investment growth has slowed, facing pressure to cut excess capacity and output, raising questions about the sustainability of prices. How long can this rise last? That’s the suspense.

Another interesting phenomenon: currencies like the Chilean Peso (CLP) and South African Rand (ZAR), which are directly linked to metal prices, have performed well over the past six months. But similarly, they are also influenced by fluctuations in metal prices.

Looking ahead? Central banks in emerging markets are still seeking opportunities to cut interest rates, while the Federal Reserve currently shows no clear dovish signals. So, some hedging demand is expected to emerge, but the overall market direction still depends on the game of these macro factors.

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CryptoTarotReader

· 01-08 06:57

Copper prices hit new highs again, this wave is really fierce Wait, are the tariff expectations this strong? It feels like the US is stockpiling, while London is actually short on supply, and the price difference... The real issue is China's investment slowdown, how long it can keep rising is indeed a suspense

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MondayYoloFridayCry

· 01-08 05:00

The copper break above 13,000 feels like a false move by the Federal Reserve. The real hidden danger is China's production capacity pressure; it won't last too long. I've already jumped into the Chilean peso, dancing along with metal prices. Inventory increases and decreases are a bit strange... The strong tariff expectations seem to be leaving themselves an exit route. They only dare to take big actions once the central bank's rate cut signals are clear; right now, it's a bit uncertain. Gold being beaten down by industrial metals is also a first time seeing that. If China continues to cut production, copper prices really can't hold up. The US stockpiling copper is just sharpening the knife; beware of cutting the leeks. It feels like the peak isn't far off this time; be cautious when going long.

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RatioHunter

· 01-06 14:53

Copper prices break 13,000? Can we catch this wave, or is it just another false hype driven by tariff speculation? China's production capacity pressure is really a suspense; it feels like a correction is coming again. Inventory increases and decreases are already causing tension; this market is too sensitive. The tariff expectations won't last long; sooner or later, real demand will have to speak. Unbelievable, CLP and ZAR are about to be played out by metal prices again.

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BlockTalk

· 01-06 14:51

Copper prices have broken 13,000? How long can the tariff expectation hype last? It feels like the suspense is too great. The production capacity pressure on this side of China is evident; it can't be hyped for too long. Metal prices are rising even faster than gold, which is a bit outrageous. Most of the hype is about tariff expectations; what about actual demand... that's the real key. The inventory fluctuations reflect panic, a typical short-term trading rhythm. Emerging market central banks want to cut interest rates, but the Federal Reserve is holding steady; this pairing is a bit tense. As metal prices rise, CLP and ZAR follow suit, but the risks are also high. If it weren't for the tariff expectations, could copper prices be this aggressive? It doesn't seem to have enough fundamental support. Strong industrial demand is real, but the pressure from China is too obvious; the overheated market feels very intense. This rally has exceeded 21 years, but how long it can hold is really a question.

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ProbablyNothing

· 01-06 14:51

Copper has risen again, but we need to keep an eye on China's investment slowdown. Tariff expectations are playing really hard, and the reverse inventory operation is interesting. Once China closes its capacity reduction gate, can prices still go up? Probably overvalued. The peso and rand are holding tight, or they'll be dragged down by metal prices. The Federal Reserve hasn't signaled dovishness; how long this rally can last is really uncertain.

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GateUser-7b078580

· 01-06 14:49

Data shows another round of policy expectation speculation, but... China's capacity pressure should have been recognized long ago. When tariff expectations strengthen, inventories move in the opposite direction. This mechanism doesn't seem quite right. If 13,000 breaks, it breaks. Just wait a bit longer; historical lows will eventually come. Miners are consuming too much, and grassroots demand can't sustain for long. The observed pattern is just like this. The key is China's investment slowdown; everything else is just noise.

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DegenApeSurfer

· 01-06 14:45

Is copper price breaking 13k? How long this wave can hold is really uncertain. China's demand is the suspense here. The expectation of US tariffs is so strong, and the inventory contrast is quite interesting. What is the market betting on? LMEX outperforms gold returns, this is truly the fundamentals speaking. Chile Peso and South African Rand are dancing along with metal prices. Can we buy the dip now or should we wait? It feels like waiting for the Federal Reserve and emerging market central banks' moves. Macro game theory is the real determinant.

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DeFiVeteran

· 01-06 14:31

Copper prices have broken 13,000 now, this time it's really happening. Wait, is China's production capacity still under pressure? Can this rally last... With such strong tariff expectations, it feels like betting on US inventories. CLP and ZAR are following metal prices; those who profit from this wave are the ones who planned early. The Federal Reserve has no dovish signals, that's the core, right? Everything else is just a side show. That crazy wave in 2021, and now it's broken again... Is the market really hungry? Industrial demand is strong, but the sustainability is definitely questionable; no one can say for sure.

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