The price of copper reached a record high in trading Wednesday, the industrial metal boosted by hopes of a truce in the US-China trade war.

Copper hit $11,143 a tonne on the London Metal Exchange, also on concerns about tight global supply as a major mine in Indonesia remains shut following a deadly mudslide last month.

The new high beats the record of $11,104.5 a tonne in May 2024. Copper has risen more than 25 percent in value this year.

“The prospects of a trade agreement between the US and China provided the main boost” to Wednesday’s record, noted Commerzbank analyst Thu Lan Nguyen.

US President Donald Trump voiced optimism for advancing toward major trade deals with Beijing and Seoul, on the eve of Thursday’s crucial talks in South Korea with Chinese leader Xi Jinping.

Copper demand has exploded in recent years, with the metal needed for solar panels, wind turbines, electric-vehicle batteries, and consumer electronics.

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The metal is also used in military hardware, including aircraft, while there is growing demand linked to the boom in artificial intelligence and data centres.

“The energy transition combined with increased demand for (AI) power… has become major supportive driver of demand,” Saxo Bank analyst Ole Hansen told AFP.

“In China, it has offset a slowdown in demand towards construction, historically a major driver of copper demand.”

AFP