Copper Prices Hit Record High as US Tariff Uncertainty Drives Demand

Copper prices have hit record highs due to rising demand and supply disruptions. The benchmark three-month copper price on the London Metal Exchange (LME) rose 0.8% to $14,533 per ton, exceeding its previous high of $14,4527.50 in January. This represents a 47% increase over the last 12 months.

The surge in demand is driven by the increasing need for copper in power grids, renewable energy facilities, artificial intelligence (AI) data centers, and electric vehicles. Copper is a key raw material used in various industries due to its high electrical conductivity.

However, the main factor contributing to the rapid price increase is the uncertainty surrounding US tariffs on refined copper. The possibility of additional tariffs has led trading companies to move large quantities to the US in advance, reducing available supplies in other regions.