Copper Prices Plummet 4% Amid US Tariff Uncertainty
Copper prices experienced a sharp decline of 4% on Thursday after reaching record levels. The London Metal Exchange's three-month copper contract had touched an all-time high of $14,875 per tonne before retreating sharply in the same session.
The reversal was driven by traders taking profits after reports emerged that the White House is yet to decide on tariffs on refined copper. This uncertainty has been significant as the prospect of US tariffs has been one of the key forces reshaping copper flows this year.
Fitch Solutions company BMI's latest commodities report puts COMEX copper's average premium over LME copper at 5.6% in 2026, saying the premium encouraged record volumes of copper to be shipped to the US. However, the COMEX-LME spread had narrowed to an average 3.8% over the past month.
Ashish Rajodiya, head of commodity at PL Capital Group, said that underlying supply conditions remain tight, and this correction looks driven more by positioning than by any genuine shift in demand. Prices could stabilise once the market resets its tariff expectations.