Copper's Landmark Year: 5 Major Market Shifts That Defined 2025

The copper market experienced extraordinary volatility throughout 2025, with prices climbing to historic peaks as supply tightness met robust demand from renewable energy transitions. The red metal’s remarkable performance stood out among commodities, demonstrating that industrial metals tied to economic transformation could move in tandem with traditional safe-haven assets. This convergence created unique trading dynamics in copper futures and spot markets alike. Below are the most significant events that shaped copper’s trajectory in 2025.

1. Glencore’s Strategic Exit from Australian Copper Operations

Publish date: July 24, 2025

The mining sector witnessed a major operational shift when Glencore announced the closure of its final two Australian copper mines—Enterprise and X41—located in Mount Isa, Queensland. This decision, first signaled in late 2023, reflected mounting losses and the company’s inability to secure adequate funding. The implications were substantial: approximately 17,000 regional employment positions depended on the copper mining chain and related industries.

However, government intervention provided a lifeline. In October, Australia’s federal and Queensland state governments jointly committed AU$600 million—distributed equally and payable over three years—to sustain the Mount Isa copper smelter and adjacent Townsville refinery. Troy Wilson, interim COO of Glencore Metals Australia, acknowledged this support for policies fostering critical metals processing backed by affordable energy infrastructure.

2. Tariff Uncertainty Propels Copper Prices Beyond US$10,000

Publish date: March 21, 2025

Mid-March brought a defining moment as copper prices surpassed the US$10,000-per-metric-ton threshold, reaching a five-month high. This spike followed earlier concerns about potential trade restrictions, prompted when the US administration launched an investigation into copper import security implications. Market participants grew anxious about potential tariffs, which analysts warned could create divergence between Comex and London Metal Exchange copper quotations.

According to StoneX analysis, such tariffs could fundamentally distort international copper distribution, incentivizing suppliers to redirect metal flows toward US destinations—a shift with far-reaching consequences for copper futures positioning globally.

3. Chinese Billionaire Executes Bold Copper Pivot from Precious Metals

Publish date: May 21, 2025

Chinese entrepreneur Bian Ximing captured market attention by reallocating capital from gold to copper following a reported US$1.5 billion gold profit. Bloomberg sources indicated he accumulated nearly US$1 billion in copper futures positions. His strategic move appeared calculated around copper’s essential function in global energy infrastructure modernization and China’s push toward advanced manufacturing sectors.

Rather than retreating amid trade tensions, Bian demonstrated conviction in China’s economic trajectory and structural demand drivers for copper. His blog commentary—“investment is essentially a game of survival”—encapsulated a contrarian approach to market volatility, positioning risks as opportunity windows.

4. Supply Shock at Grasberg Tightens Global Copper Markets

Publish date: September 24, 2025

September delivered supply-side drama when Freeport-McMoRan (NYSE:FCX) declared force majeure at its Grasberg copper-gold operation in Indonesia, where the company holds 49% with the Indonesian government retaining 51% ownership. A catastrophic inundation event on September 8—involving approximately 800,000 metric tons of wet material and resulting in seven fatalities—forced operational suspension.

Market reaction was immediate: copper prices jumped 5%, reaching $4.84 per pound on Comex and US$9,900 per metric ton on London Metal Exchange simultaneously. Grasberg’s significance to global supply cannot be overstated—the mine produces 1.7 billion pounds of copper and 1.4 million gold ounces annually, making it among the world’s largest combined copper-gold operations. Company officials characterized the incident as unprecedented in the mine’s history.

5. National Security Investigation Reshapes Trade Policy and Copper Dynamics

Publish date: February 27, 2025

An executive order launched in February to investigate copper imports under Section 232 of the Trade Expansion Act triggered cascading market consequences. White House Trade Adviser Peter Navarro framed the probe as addressing US supply chain vulnerabilities while constraining China’s expanding copper sector. Beyond tariffs, Navarro emphasized restoring domestic capacity in copper mining, smelting, and refining to serve military and technological requirements.

The policy uncertainty moved markets swiftly. In Asia, London Metal Exchange warehouse withdrawals surged by 93,000+ metric tons within four days—the largest such drawdown since 2013—as participants repositioned ahead of potential trade barriers. These shifts underscored how policy signals could reshape copper flows as substantially as physical supply disruptions.

Throughout 2025, copper demonstrated its critical role in the energy transition while remaining vulnerable to geopolitical uncertainty and supply chain dynamics. Whether through government intervention in Australia, supply shocks in Indonesia, or trade policy recalibrations, the year proved that copper’s fate increasingly depends on macro factors beyond traditional mining economics.