Copper Prices Hit Record High on US Tariff Fears and Supply Crunch

Copper prices have reached a record high on the London Metal Exchange (LME), surpassing its previous record of USD 14,527.50 set in January. The benchmark three-month copper price climbed to an all-time high of USD 14,533 per tonne.

Experts attribute the rally to a combination of US tariff concerns, tightening availability, supply disruptions and rising demand from areas such as artificial intelligence (AI), electrification and power infrastructure.

Kishore Narne, Director and Head of Commodity at Motilal Oswal Financial Services, said copper was caught between persistent global supply disruptions and strong structural demand. He expects a sustained upside breakout to remain capped near Rs 1,400-1,410 per kg until there are monetary easing signals or fresh industrial demand catalysts.

Ajay Bagga, Banking and Market Expert, linked the immediate rally to US tariff expectations, with manufacturers bringing forward purchases to avoid potentially higher costs later. He described the move as a trade-policy rally taking place on top of a structural supply shortage.

Antu Eapen Thomas, Senior Research Analyst at Geojit Investments, said copper's rally is being driven by tightening market availability as anticipation of US import tariffs has disrupted global trade flows, with significant volumes being redirected to the US and reducing inventories on the LME and elsewhere.