Copper Edges Closer to Record High as Global Supply Tightens
Copper prices are heading towards a record close after strong gains driven by tighter global supply. The metal has risen as much as 0.9% on the London Metal Exchange (LME), surpassing its mid-May closing high.
The surge in copper prices is also fueled by growing optimism about demand from data centers and power grids, but supply-side factors are equally critical. Huge volumes of copper have been shipped into the US in anticipation of a decision on import tariffs by President Donald Trump, diverting metal away from LME-tracked warehouses worldwide.
Copper has rallied around 14% so far in 2026, building on three annual gains. The commodity's long-term upswing is driven by the rising need for electrification powered by the energy transition. However, ore grades at some existing mines have been declining, while major new pits are getting harder and more costly to develop.
'Copper fundamentals remain supportive,' ING Bank NV analysts including Ewa Manthey said in a note. 'Tight physical markets, low inventories and constrained mine supply should continue to underpin prices.'