Copper Prices Soar to Record High on US Tariff Fears and Supply Disruptions

Copper prices have reached a fresh record high, driven by a combination of factors including US tariff concerns, supply disruptions, and rising demand from emerging technologies such as artificial intelligence (AI) and electrification.

The benchmark three-month copper on the London Metal Exchange (LME) climbed to an all-time high of USD 14,533 per tonne, surpassing its previous record of USD 14,527.50 set in January.

Kishore Narne, Director and Head of Commodity at Motilal Oswal Financial Services, attributed the rally to persistent global supply disruptions and strong structural demand.

'Copper is caught in a tug-of-war between persistent global supply disruptions and driven by mine supply shortfalls in South America and refinery concentrate bottlenecks,' Narne said.

Ajay Bagga, Banking and Market Expert, pointed out that the immediate rally was closely linked to US tariff expectations, with manufacturers bringing forward purchases to avoid potentially higher costs later.

'This isn't copper going up because the world needs more copper right now - it's copper going up because everyone's racing to buy it before Washington's tariffs make it more expensive later,' Bagga said.