Copper Prices Surge to Record High Amid Tight Supply and Tariff Fears

Copper prices surged to a record high on the London Metal Exchange (LME) this week, driven by tight global supply and growing US tariff expectations. The metal touched $14,533 a ton on the LME, breaking past its previous record set in January. The main forces pushing prices higher are supply and demand imbalances.

Large copper mines around the world are struggling to meet rising usage from data centres, renewable energy projects, and power grids, causing a significant gap in supply. Furthermore, traders have been shipping large volumes of refined copper into the United States, betting that President Trump will expand tariffs to cover imports of the metal.

This has pulled copper out of LME warehouses and concentrated stockpiles in the US instead, leaving the rest of the world with tighter near-term supply. The squeeze has already shown up in the market, with LME warehouse stockpiles falling to critically low levels last month, triggering a sharp supply crunch.