Copper Prices Soar to Record High Amid US Tariff Uncertainty

Copper prices have surged to a record high of $14,779 per tonne on the London Metal Exchange (LME), extending gains for a fourth consecutive session. This rally is being fueled by uncertainty over U.S. copper tariffs, which has led to significant volumes of copper moving into COMEX-approved warehouses.

The proposed 15% tariff on refined copper imports from 2027 and 30% in 2028 has created uncertainty among market participants, causing them to divert copper into the United States. As a result, LME and Shanghai Futures Exchange (ShFE) stocks have decreased to less than half of COMEX inventories.

The near-term direction of copper prices will depend on upcoming U.S. economic signals, including details of a U.S. Treasury bond buyback expected Wednesday and August Consumer Price Index data due Friday. A stronger dollar following the CPI release could trigger profit-taking by making dollar-denominated copper more expensive for overseas investors.

However, as long as tariff policy remains unclear, the upside in copper prices remains intact. Copper is considered bullish above $14,400 per tonne, with potential to breach the key $15,000 level this week.