LME Records Surge in Trading Volumes Amidst Global Metal Market Volatility

The London Metal Exchange (LME) posted record trading volumes in 2025, a significant rebound from the challenges faced during the nickel crisis of 2022. The surge in activity reflects the impact of global market dynamics, particularly U.S. trade policies and growing speculative interest.

Owned by Hong Kong Exchanges and Clearing (0388.HK), the LME saw average daily volumes reach 777,016 contracts in the fourth quarter of 2025, surpassing the previous quarterly record of 735,604 contracts set in the second quarter of 2014. Overall, LME futures open interest increased by 15% compared to 2024, reaching its highest level since early 2021.

The increase in trading activity wasn't limited to London. The Shanghai Futures Exchange (ShFE) also experienced a boom in December, and retail investors in the U.S. showed increased interest in smaller copper contracts on the CME. This speculative fever was fueled in part by U.S. import tariffs on aluminum and the potential for tariffs on copper, leading to market anticipation and trading activity.

While the CME's flagship copper contract saw a 33% contraction in activity due to volatility, its aluminum contracts benefited from the tariff-driven dislocation in the aluminum market, with volumes increasing by 47% (Midwest U.S.) and 72% (Europe) year-on-year.

Investor confidence in the LME appears to have been restored, with renewed fund interest since September. Volumes for copper and tin were the highest since 2013 and 2014 respectively, lead activity reached all-time highs, and nickel posted its second-best quarterly volumes ever. This suggests a broader enthusiasm for base metals beyond just copper.

The surge in activity also extended to China, with the ShFE experiencing a significant increase in liquidity in December. Record volumes of tin traded, prompting a warning from the China Nonferrous Metals Industry Association (CNMIA) against “blindly following the trend.”

In the U.S., the CME saw growth in its smaller, retail-oriented contracts, such as the micro copper contract (up 20% year-on-year) and copper event options, indicating a broadening of speculative participation.

The LME's strong performance in 2025 demonstrates its resilience and its continued role as a central hub for global metal trading, despite past challenges and ongoing market volatility.

Source: Resurgent London Metal Exchange rides speculative tsunami