Copper Prices Soar on Tariff Uncertainty

Copper prices have reached record highs on the London Metal Exchange (LME), with three-month futures nearing $14,800 per ton. This surge is largely driven by uncertainty surrounding US tariffs on refined copper imports.

ING's commodities team notes that traders are positioning for potential US tariffs on refined copper imports, which would keep drawing metal into the US. The proposal is for a 15% duty from January 2027, rising to 30% in 2028.

As a result, large volumes of metal have been pulled into the US, with COMEX inventories reaching record levels. Meanwhile, less metal is available outside the US, tightening the London market and putting pressure on short positions.