Copper spikes to record near $13,000 before paring gains

By Eric Onstad

LONDON, Dec 29 (Reuters) - Copper prices spiked on Monday to a record just shy of $13,000 a metric ton as the London market raced to catch up with gains in China and the U.S. while it was closed on Friday.

LME copper has climbed by 41% this year, fuelled by worries about shortages and also supported by a weak dollar and strong gains in other financial markets.

Benchmark three-month copper CMCU3 on the London Metal Exchange rocketed by 6.6% to a record $12,960 a ton in Asian trading, but pared gains to $12,212, up 0.4%, by 1700 GMT.

Copper on the Shanghai Futures Exchange and the U.S. Comex market hit record highs on Friday while the LME was closed for Britain's Boxing Day holiday.

"Comex led on Boxing Day," said Robert Montefusco at broker Sucden Financial.

U.S. Comex copper futures HGc4 jumped to $5.8395 per lb on Friday, surpassing a record touched on July 23 when the planned date for U.S. tariffs approached, but on Monday slid 4.2% to $5.593.

While the imposition of U.S. tariffs did not affect refined copper, the decision will be revisited next year, prompting a fresh flow of copper to the U.S. to take advantage of higher prices there.

The pile-up of copper in the U.S. has tightened markets elsewhere while mine disruptions have caused many analysts to forecast deficits next year.

The latest price fluctuations sent the premium of Comex over the LME down to $112 a ton, the lowest since late August and down from $439 at the start of December and over $3,000 in July.

The gains in metals were also helped by wider risk-on sentiment, with global equities on track to end 2025 at record highs and oil prices also on the rise. MKTS/GLOB O/R

The most active copper contract on SHFE SCFcv1 touched a record peak of 102,660 yuan a ton, closing daytime trading up 0.8% at 98,860 yuan ($14,105.33).

Supporting gains on SHFE was news on Friday that China would rein in copper capacity growth in the next five-year plan.

Among other metals, LME aluminium CMAL3 dipped 0.3% to $2,953 a ton and tin CMSN3 tumbled 5.3% to $40,565, while zinc CMZN3 edged up 0.1% to $3,087, lead CMPB3 rose 0.6% to $2,006.50 and nickel CMNI3 added 0.3% to $15,825, after hitting $16,063.50 for its strongest since April.

($1 = 7.0087 Chinese yuan renminbi)

Benchmark copper on the London Metal Exchange