Copper Prices Soar to Record Highs Amid US Tariff Fears
Copper prices have surged to record-highs, causing concern among manufacturers of consumer-focused and industrial products.
The futures price of copper on the London Metal Exchange (LME) hit an all-time high of $14,779 per ton on September 8. Although it has declined slightly since then, it remains elevated at $14,167.67 per ton as of Wednesday afternoon.
The rally is partly due to buyers in the United States stockpiling copper ahead of potential tariffs on refined copper imports from the US government under President Donald Trump.
India, which imports about 85% of its copper requirements, is particularly vulnerable to the price increases. Copper wire manufacturers such as Finolex, Polycab, and Havells have already raised prices in an attempt to mitigate some of the cost pressures.
Copper is a crucial component in many industries, including electric vehicles (EVs), consumer electronics, and engineering goods. EVs use about 3-4% more copper than traditional combustion vehicles, making them particularly susceptible to price increases.