Copper Prices Near Record Highs on Tariff Concerns and Supply Disruptions

Copper prices are nearing record highs due to concerns over tariffs and supply disruptions. The London Metal Exchange (LME) reported a sharp decline in available copper stocks, falling from 166,775 metric tons on August 19 to 107,050 metric tons by August 26.

The United States has seen an influx of copper imports ahead of the January 1, 2027 deadline when a 15% tariff on refined copper is set to take effect. US traders are stocking up before the tariff kicks in, pushing inventories to a record 758,889 short tons.

Supply disruptions are also contributing to higher prices, with Codelco's El Teniente mine facing seismic risks and output down by 27% compared to the same period last year. The expansion project at the mine has been suspended indefinitely due to safety concerns, while other major mines such as Freeport-McMoRan's Grasberg and Ivanhoe Mines' Kamoa-Kakula are still recovering from incidents in 2025.

The ongoing conflict between the US and Iran is also affecting copper prices, with limited supplies of sulfuric acid pushing up operating costs for miners. Oil prices have increased significantly since the conflict began, adding to costs further down the production chain.