Copper Prices Soar to Record High on US Tariff Fears

Copper prices hit a record high on the London Metal Exchange as traders react to US tariff fears. The three-month copper futures rose by up to 0.8% to $14,533 per metric tonne, surpassing the previous record of $14,527.50 set in January.

The metal has seen significant gains this year, increasing by about 17% and a staggering 47% over the past 12 months. The rally is partly due to a longer-term mismatch between supply and demand, as ageing mines struggle to keep pace with consumption from data centres, renewable energy projects, and power grids.

However, the latest surge in copper prices has been driven more by tariff-related flows than a sudden increase in end-user demand. The US Commerce Department was due to advise the White House on the need for tariffs on refined copper over two months ago, but no final decision has been disclosed.