Copper Prices Reach Record Highs Amid U.S. Tariff Concerns and Supply Constraints
Copper prices hit a new record on the London Metal Exchange, driven by concerns over potential U.S. tariffs and ongoing supply challenges at key mines globally. Three-month copper futures rose to $14,598.50 per metric ton after touching an intraday high of $14,635, with the metal up nearly 17% this year. The price surge is attributed not only to long-term demand expectations from energy transition projects but also short-term supply disruptions and trade flow distortions. Global copper-mine production fell by 1.1% in H1 2026 according to preliminary data, with significant declines reported in major producing countries like Chile, Indonesia, and the Democratic Republic of Congo. The U.S. tariff uncertainty stems from a proclamation signed last year that imposed levies on semi-finished copper products, leaving refined copper's status unresolved as an expected June 30 deadline for decision passed without clarity. Traders are moving large volumes into the U.S., creating inventory shortages elsewhere and pushing prices higher in anticipation of potential import duties. Analysts suggest further gains could follow if prices stay above $14,400 per ton, though volatility remains due to market positioning and possible profit-taking.
Topics: commodities global trade supply chain tariffs