Copper Prices Soar on US Tariff Fears and Global Supply Crunch

The price of copper on the London Metal Exchange (LME) has surged to $14,700 per tonne this month, up from $12,000 in December. This increase is largely attributed to concerns over a potential 15% import tariff on refined copper by the US next year.

Market analysts point out that the proposed tariff hike has led to stockpiling of copper in the US, resulting in shortages elsewhere. As a result, prices of copper and its alloys, brass and bronze, have risen sharply.

In Kerala, scrap copper prices have increased by 40-45% in just eight months, with an average price of `1,010 per kg as of July 2026. The prices of brass and bronze have also seen a significant rise, from `477/kg to `672/kg and `475/kg to `687/kg respectively.

The sharp increase in copper prices is not limited to Kerala; globally, scrap aluminium prices have risen by around 21% in eight months, while iron and steel prices have barely moved.