Copper Prices Near All-Time High Amid Supply Pressures

Copper prices are nearing an all-time high as supply pressures continue to build up in the global market. The benchmark three-month copper price climbed 0.4% to $14,410.50 a ton on the London Metal Exchange (LME) as of 1:32 p.m. in Shanghai.

This is despite a severe market squeeze last week that eased somewhat after major deliveries of metal to exchange warehouses helped ease the crunch. However, a request to withdraw more than 50,000 tons of copper on Monday stoked fresh supply concerns.

The global market has been bracing for an announcement from the White House on its plans for import tariffs on refined copper, which has led to a surge in metal shipments to the US and drained stockpiles elsewhere. The LME's September contract was $150 a ton above October on Wednesday, from less than $50 at the end of last week.

Copper prices have surged about 16% this year due to growing long-term demand from artificial intelligence, renewable energy, and power grids. However, any disruptions to mine operations don't help, as the global market lost about 338,000 tons in the first half due to mining setbacks in Indonesia, Democratic Republic of Congo, and Chile.