Copper Prices Hit New Records Amid Supply Tightening and Tariff Concerns
Copper prices reached new highs on Tuesday, driven by expectations of near-term supply constraints and rising tariffs. Futures traded at around $6.85 a pound in the US and touched an intraday record of $14,617 per metric ton on the London Metal Exchange. Copper has surged roughly 21% year to date, with the Copper Miners ETF (COPX) up by 32%. Increased demand from energy transition projects and AI infrastructure is also contributing to rising prices. Canada recently raised tariffs on certain US imports in response to American measures affecting Canadian goods, including copper. The delayed review of refined copper cathode import restrictions has led the US to stockpile physical supply ahead of a potential policy shift. This has pushed China to pay higher prices for global supplies as Shanghai warehouses report record-low inventories. Analysts at JPMorgan believe copper still has upward momentum and could reach $14,800 per metric ton in Q4 2026. However, some strategists caution that heavy long positions may lead to a near-term correction.
Topics: AI demand commodities energy transition supply chain tariffs