Copper Heads for Record High Close Amid Tight Supply and Strong Demand

Copper prices are heading for a record close due to strong gains driven by signs of tighter short-term supply across the global market.

The metal has traded as much as 0.9% higher on the London Metal Exchange (LME), putting it above the closing record set in mid-May, and its rally has been fueled by growing optimism about demand from data centres and power grids.

Huge volumes of copper have been shipped into the US this year in anticipation of a decision on import tariffs by President Donald Trump, pulling metal away from LME-tracked warehouses worldwide, while there's also been more buying activity from China, sharpening competition for supplies.

Copper has rallied around 14% so far in 2026, building on a run of three annual gains, and its long-term upswing is rooted in the rising need for electrification powered by the energy transition. At the same time, ore grades at some existing mines have been declining, while major new pits are getting harder and more costly to develop.