Copper Prices Near Record as Supply Tightness Trumps Demand

Copper prices are on track to reach a new record high due to tight supply and strong demand. The metal has gained up to 0.9% on the London Metal Exchange (LME), surpassing its previous closing high set in mid-May.

The surge is attributed to both growing demand for copper, particularly from data centers and power grids, and supply constraints. A significant portion of copper shipments have been directed to the US ahead of a decision by President Donald Trump on import tariffs, resulting in depleted stocks at LME warehouses.

Additionally, China's strong buying has increased competition for available supplies, further contributing to the price increase. ING Bank notes that tight physical markets, low inventories, and constrained mine supply will continue to underpin prices.