Copper surged to a record in Shanghai and rallied in New York, adding to substantial annual gains as investors bet on tighter global supplies in 2026, while also pricing in the impact of a weaker US dollar.

In China, prices gained 2.7% to 98,780 yuan ($14,090) a ton on the Shanghai Futures Exchange, while contracts rose 3% to hit $5.743 a pound on the Comex. For the US benchmark, that’s the highest since an unprecedented short squeeze in July. The London Metal Exchange will reopen on Monday after the Christmas break.

Metals have made big gains in December, rounding off a year in which trade dislocations, geopolitical uncertainties, and supply shocks have combined to shake up the industry. On the demand side, copper is expected to be a major beneficiary of the world’s energy transition, helping to make it one of biggest winners in 2025, with a gain of more than 42% in New York.

Comex contracts spiked to a record earlier this year in anticipation that US President Donald Trump would put tariffs on the metal. While he ultimately excluded the most widely-traded form of the commodity from levies, that decision is due for a review in 2026. A continued rush of metal into the US has spurred concerns buyers elsewhere may end up scrambling for supplies.

Futures were at 98,370 yuan a ton in Shanghai at 10:25 a.m. local time, while on the Comex, copper was at $5.7205 a pound.