Copper Prices Near Record Highs Amid Tight Supply

Copper prices are trading near record highs, supported by tight supply and tariff-related stockpiling into the US. According to ING's Warren Patterson and Ewa Manthey, low inventories, constrained mine supply, and ongoing disruptions are key supports for copper prices.

The latest move higher in copper prices was also fueled by reports that the Democratic Republic of Congo (DRC) had moved to restrict exports of copper concentrates. However, the impact on the refined market is likely to be limited, as most of the DRC's copper is exported as cathode rather than concentrate.

Copper fundamentals remain supportive, with tight physical markets and low inventories continuing to underpin prices. Any disappointment on US tariff measures could trigger a period of consolidation in copper prices.