Copper Prices Set for Record High Close on Tight Global Supply
Copper prices are headed for a record high close as the metal gains strength due to tight global supply. On August 7, copper traded up to 0.9% higher on the London Metal Exchange (LME), surpassing its mid-May closing record.
The surge in copper prices is being driven by both growing demand and supply-side factors. Data centres and power grids are increasingly using copper, which has fueled a rally of around 14% so far in 2026. However, the commodity's long-term upswing also has its roots in the rising need for electrification powered by the energy transition.
Copper fundamentals remain supportive, according to ING Bank NV analysts Ewa Manthey and her team. They note that tight physical markets, low inventories, and constrained mine supply should continue to underpin prices.
The unusual trade flows triggered by US import tariff uncertainty are obscuring broader headwinds as the global economy wavers. Copper's most credible downside risk is a prolonged Iran war and continued resilience in Chinese output, which could widen the gap of supply over demand to half a million tonnes in 2026.