Copper just hit $12,000 per ton for the first time ever, according to Bloomberg and the Wall Street Journal, marking a watershed moment in commodity markets that reflects far deeper shifts in global supply chains and geopolitical competition for critical minerals.
The surge represents more than just another price record. According to Mining.com, copper prices have climbed by more than a third, driven by trade dislocations and mine outages that have tightened global supplies. This isn't a temporary blip—it's a structural realignment of how the world sources the metals that power everything from power grids to electric vehicles.
What makes this moment particularly significant is the speed at which the market has moved. The combination of supply constraints and trade uncertainty has created what Bloomberg described as fear gripping the copper market, pushing prices to levels that seemed unthinkable just weeks ago. For investors and industrial users alike, the question is no longer whether prices will stabilize, but at what level they'll settle.
China's Grip on Global Commodity Markets Tightens
While copper captures headlines, a broader story is unfolding about who controls commodity markets. According to Reuters, China has overtaken OPEC+ as the main oil price maker—a remarkable shift that underscores Beijing's outsized influence over global energy and commodity markets.
This development carries profound implications for critical minerals strategy. China's ability to move markets extends well beyond oil into the rare earths, lithium, and cobalt that are essential for the energy transition. As Western nations scramble to secure their own supply chains, China's market dominance creates both urgency and complexity in the race to develop alternative sources.
The stakes are particularly high for the United States. According to a Wall Street Journal headline from December 10, Silicon Valley is racing to make critical minerals and blunt China's dominance. This isn't merely a commercial competition—it's becoming a strategic imperative as policymakers recognize that dependence on Chinese mineral processing creates vulnerabilities across defense, technology, and energy sectors.
The AI Energy Boom Reshapes Power Markets
Away from commodity exchanges, a different kind of supply crunch is emerging. According to Reuters, AI data centers are forcing dirty "peaker" power plants back into service as electricity demand from artificial intelligence operations soars. More than half of the power plants in the PJM market—the largest power grid in the United States covering 13 mid-Atlantic and Midwest states—have either deferred or canceled retirement plans, according to OilPrice.com analysis of company filings.
This development has direct implications for critical minerals demand. Data centers require massive amounts of copper for wiring and infrastructure, adding another layer of demand pressure to an already tight market. The irony is sharp: the technology sector's push toward AI is inadvertently extending the life of fossil fuel infrastructure while simultaneously driving demand for the minerals needed for the energy transition.
Looking Ahead: 2026 at a Crossroads
As the calendar turns toward 2026, the mining sector is preparing for what could be a transformative year. According to Mining.com, Brunswick is preparing for an "aggressive" start to 2026, signaling that major producers are positioning themselves for continued volatility and opportunity.
Japan's decision to test rare-earth mining from deep seabed mud, as reported by Mining.com, represents another sign of how seriously nations are taking mineral security. These aren't incremental moves—they're strategic pivots reflecting a fundamental recognition that the old supply model is broken.
The convergence of record copper prices, China's market dominance, surging AI-driven electricity demand, and intensifying geopolitical competition over critical minerals creates a complex landscape for 2026. Companies, investors, and policymakers are all recalibrating their strategies based on a new reality: critical minerals are no longer just commodities. They're strategic assets in a global competition that will define energy, technology, and geopolitical power for years to come.
Reporting based on coverage from Bloomberg, Reuters, Wall Street Journal, Mining.com, OilPrice.com, and Mining Technology.