Copper Prices Soar as Supply Concerns and US Tariffs Take Hold
Copper prices have surged to a record high on the London Metal Exchange (LME), driven by concerns over supply and US tariffs. The benchmark three-month contract reached $14,617 per tonne, up from earlier highs. This comes as major mining operations face disruptions, with Chile's copper export revenue falling 13% in August compared to July.
The current price hike reflects a longer-term imbalance between supply and demand, which has been exacerbated by rising consumption from data centres, renewable energy infrastructure, and power grids. The US Commerce Department's review of tariffs on refined copper imports has also contributed to the rally, with traders redirecting shipments towards the US to avoid potential levies.
US copper inventories have surged to around 695,624 metric tons, while Shanghai Futures Exchange stocks have fallen to their lowest level since January 2024. This regional divergence in available metal highlights the supply pressures facing major mining operations.