Copper Prices Soar to All-Time High Amid US Tariff Fears and AI Demand

Copper prices surged to an all-time high on the London Metal Exchange on September 7, hitting $14,533 per tonne. This marks a significant increase of 17% over the past year.

The rally is attributed to various factors, including US tariff fears and expectations that President Donald Trump may expand tariffs on refined copper imports. As a result, traders have been moving large quantities of copper into the US, with around 885,000 tonnes imported during the first half of 2026.

Another factor contributing to the price surge is the sharp concentration of global inventories in the US. Copper stocks held in Comex warehouses have climbed to a record 675,000 tonnes, while stocks in the LME network have declined.

The copper market also faces a longer-term supply-demand imbalance due to ageing large-scale mines struggling to increase output and several major producers facing operational challenges. Additionally, the rapid expansion of artificial intelligence infrastructure is creating additional demand for copper, particularly in power systems, cooling infrastructure, and network equipment.