Copper Prices Hit Record High on US Tariff Concerns

Copper prices have surged to a record high on the London Metal Exchange due to concerns over potential US tariffs. The metal's benchmark three-month futures rose as much as 0.8% to $14,533 per metric tonne, surpassing its previous record of $14,527.50 set in January.

The metal has seen significant gains this year, increasing by about 17% and 47% over the past 12 months. The rally reflects a longer-term mismatch between supply and demand, with ageing mines struggling to keep pace with consumption from data centres, renewable energy projects, and power grids.

However, the latest surge has been driven more by tariff-related flows than a sudden increase in end-user demand. Global inventories remain relatively high, but copper stocks have become concentrated in the United States, leaving less metal available through the LME network.