Copper Prices Soar to Record High Amid US Tariff Fears and Supply Disruptions
Copper prices have surged to a record high of $14,533 per tonne on the London Metal Exchange (LME), driven by US tariff concerns, global supply disruptions, and rising demand from artificial intelligence (AI) and electrification.
Kishore Narne, Director and Head of Commodity at Motilal Oswal Financial Services, said copper is caught in a tug-of-war between persistent global supply disruptions and strong structural demand. He expects a sustained upside breakout to remain capped near $1,400-$1,410 per kg until there are monetary easing signals or fresh industrial demand catalysts.
Ajay Bagga, Banking and Market Expert, attributed the immediate rally to US tariff expectations, with manufacturers bringing forward purchases to avoid potentially higher costs later. He described the move as a trade-policy rally taking place on top of a structural supply shortage.
The ongoing Section 232 investigation into copper imports and market expectations of a 15% tariff starting January 2027, rising to 30% by 2028, have encouraged US manufacturers to buy copper ahead of possible tariffs. According to Bagga, this has resulted in record US imports, with more than 225,000 metric tons of refined copper imported into the US in July alone.