Copper Prices Reach New Record High Amid Tight Supply Chains

Copper prices surged to new heights on Tuesday, reaching a record peak as market analysts pointed to tight supply chains and weak mine output. The three-month copper contract on the London Metal Exchange gained 1.1% to $14,674 per metric ton by 10:40 GMT, surpassing Monday's previous record.

The rally can be attributed in part to a large flow of metal moving to the US, where tariffs on refined copper have been imposed. This has led to a significant increase in COMEX inventories, which swelled to a record 766,795 short tons as of last Friday.

However, this influx has deepened supply tightness in markets outside the US, contributing to the price spike. Analysts are warning that global mine supply may not meet robust demand heading into the annual peak-demand season in China.