Analyzing the Key Drivers of the Copper Market in 2025

Copper dominated commodity headlines as disruptions, tariffs and volatile pricing reshaped the market, prompting a look back at the forces that defined 2025. The year proved pivotal, with demand strengthening on the back of accelerating electrification and growing optimism around artificial intelligence and the expanding data infrastructure it requires. 

This combination of tightening supply, policy uncertainty and a robust demand outlook pushed prices to historic levels late in the year, a rally that extended into early 2026, culminating in LME copper cash prices surpassing $13,000 per ton. 

The red metal’s production was dominated by Chile, which remained the world’s largest source of mined copper, producing over five million tons in 2025. Given that the country is home to the largest copper mine in the world, Minera Escondida, it is expected to maintain its leading position well into the future. 

Beyond Chile, the second-largest copper producer globally is the Democratic Republic of Congo. The African country contributed 15% of total copper supply, with major operations including the Kamoa-Kakula complex and the Tenke Fungurume mine. 

When it comes to mining disruptions, the copper market was overshadowed by a series of serious and, in some cases, unprecedented operational disruptions at major mining sites. The most significant event was a major landslide at the Grasberg mine in Indonesia, which claimed seven lives and forced the suspension of operations. 

As a result, production at the mine fell by 43% year on year, with the volume of lost output roughly equivalent to the annual production of the Collahuasi mine in Chile, the third-largest copper operation globally. 

Production challenges were also evident at the Kamoa-Kakula project, where output declined by 8% in 2025 and came in well below earlier forecasts. A collapse at the El Teniente underground mine, triggered by an earthquake that exceeded the site’s design parameters, also resulted in six deaths and caused output to fall by 10% over the year. 

Overall, eleven of the world’s twenty largest copper mines recorded lower production last year. 

In addition to the above, America’s trade policy also had a huge impact on the copper market last year, starting with a Section 232 investigation that led President Donald Trump to announce a 50% tariff on copper imports mid-year. The threat of tariffs also prompted a surge in America’s import activity, including a significant increase in shipments from Chile despite an overall decline in the country’s refined copper exports. 

Overall, last year marked a turning point for the copper market, with strengthened demand pushing prices to historic highs. With these structural pressures still unresolved, the red metal enters 2026 facing continued volatility and a market increasingly shaped by geopolitics as much as fundamentals. 

Geopolitics and shifting trade policies aren’t only affecting the copper market. Even companies like Max Power Mining Corp. (CSE: MAXX) (OTC: MAXXF) are also having to contend with the same challenges in their bid to extract natural hydrogen to power the energy transition. 

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