Copper Hits Fresh All-Time Highs Amid Trade Tensions and Supply Shortages

Copper prices have reached fresh all-time highs in both New York and London as traders weigh ongoing trade tensions and supply shortages against escalating hostilities in the Middle East, which is clouding demand outlook.

Benchmark three-month futures on the London Metal Exchange rose to $14,858.50 a metric ton, surpassing its previous peak of $14,779.00 reached just prior. This marks a new record for each of the past three sessions, with Comex copper also reaching a fresh high of $6.894 an ounce.

The red metal has gained 19% this year, driven by a long-term supply-demand imbalance as ageing mines struggle to keep pace with growing consumption from data centers, renewable energy and power grids.

Tightening physical supply outside the US is a major factor, as traders continue to ship copper to American shores in anticipation of tariffs on refined copper imports. This has left the LME market underserved, with hundreds of thousands of tons shifted to the US ahead of potential levies.