On December 3, the price of LME (London Metal Exchange) copper futures once exceeded $11,500 per ton, hitting a record high, and finally closed up 3.1% at $11,145 per ton. The core driving force behind the soaring copper prices is the growing concern about supply. The surge in copper pickup orders at LME Asian warehouses, combined with market expectations for U.S. tariff policies, has pushed global copper inventories to remain at a low level. Analysts at BMO pointed out that the difficulty in expanding production by mining companies and cross-regional price arbitrage together constitute the “dual engines” for the rise in copper prices.

The commodity market presents a pattern of structural differentiation. In terms of energy, the U.S.-Russia talks failed to reach a ceasefire agreement, and coupled with the lower-than-expected increase in U.S. crude oil inventories, WTI crude oil rose 0.53% to close at $58.95 per barrel, and Brent crude oil rose 0.35% to close at $62.67 per barrel. Among precious metals, silver fluctuated near historical highs, closing at $58.51 per ounce, supported by expectations of a Fed rate cut and tight supply. Industry insiders believe that in the short term, commodities will continue the pattern of “stable energy and strong industrial metals”. Industrial metals such as copper and tin still have room for growth due to the global manufacturing recovery and supply constraints, while crude oil needs to pay attention to the game between geopolitics and inventory changes.