Copper Prices Reach Record High as Tariff Anticipation Drives Demand

Copper prices continued their upward trend for an 11th consecutive week, despite fluctuations in global markets. The metal's value has increased by nearly 17% so far this year, with a record high set earlier this month.

The surge in copper prices can be attributed to the anticipation of tariffs on refined copper from the Trump administration. This led to a rush of shipments into the US, making supplies tighter in other markets and driving up demand. China's domestic copper output edged down in August compared to July, while its demand signals are flashing green.

The Yangshan premium, which measures the price difference between copper imports and exports at the Shanghai port, reached $124 a ton on Friday, its strongest reading since November 2022. Analysts at BMI, part of Fitch Solutions, predict that base metals will remain mostly range-bound in the coming weeks as supply-side risks offset a fragile macro backdrop.