Copper Prices Smash Through $14,700 Barrier Amid AI, Tariffs, and Supply Disruptions
Copper prices have surged to an all-time high of $14,779 per ton on the London Metal Exchange (LME) after breaking through the $14,700 mark for the first time ever.
The price increase is due to a combination of factors, including long-term demand from artificial intelligence (AI) data centers and power grid investment, the prospect of U.S. tariffs on refined copper, and simultaneous supply disruptions in Chile, the world's largest producer.
Citigroup has forecasted that copper prices will reach $15,000 per ton by year-end, while Ok Ji-hee from Samsung Futures expects additional upside potential for the remainder of the year unless there is clear guidance on tariffs.
The rush to ship copper into the U.S. ahead of potential tariffs has led to a significant buildup of inventories in the country, with COMEX copper stocks soaring more than eightfold since last February.