Copper Prices Soar as Tight Supply and Tariff Fears Fuel Volatility

Copper prices remain elevated as tight supply conditions persist in the market. According to ING analysts Warren Patterson and Ewa Manthey, copper is trading above $14,000/t on the LME and near record levels on Comex.

The analysts attribute this price action to metal diversion into the US ahead of potential tariff decisions, which has left availability tighter elsewhere in the world. This supply constraint is expected to continue supporting prices across global exchanges.

Additionally, improving sentiment around the Middle East has provided a boost to industrial metals, including copper. Hopes for progress in negotiations over the reopening of the Strait of Hormuz have weighed on the US dollar, leading to lower energy prices and reduced inflation concerns.