Copper Prices Soar to Two-Month High Amid US Tariff Uncertainty

Copper prices have surged to a two-month high near $14,000/ton in London, driven by tighter availability and uncertainty over United States (US) tariffs. According to Geoff Yu of BNY, shipments to the US have drained inventories elsewhere, leaving the market exposed to squeezes.

More than 200,000 tons arrived at US ports in July, the largest monthly inflow in available shipping data, tightening supply elsewhere and pushing the LME market into a steeper backwardation that signals short-term scarcity. Tariffs may redirect flows, but they cannot create more metal, as Yu notes.

Copper has risen about 12% this year on trade policy speculation and optimism tied to the energy transition and artificial intelligence infrastructure. However, some Chinese demand has softened as prices have remained elevated.