Copper Prices Surge 18% Amid Record US Imports and Tariff Fears

Copper prices have surged by approximately 18% in 2026, driven by record US imports and falling global inventories. The price rally has been largely fueled by tariff-related stockpiling, creating a complex landscape for investors.

The uncertainty surrounding US trade policy has effectively tightened the global supply chain, forcing prices higher in the near term. Global industrial metal markets are witnessing a volatile period as copper prices have risen approximately 18% year-to-date, with aluminium also seeing significant price swings.

The Inventory Crunch on LMEA is a critical factor driving these price movements, and it's the state of inventories on the London Metal Exchange (LME) that's causing concern. Throughout 2026, stocks of both copper and aluminium have seen consistent drawdowns, leading to a market structure known as backwardation.

This happens when the market is worried about an acute shortage of ready-to-use metal. The overall market remains tight, leaving prices susceptible to sudden spikes if demand continues to outpace supply.