Copper Rally Driven by Tariffs and Supply Concerns

Copper prices have surged to new heights in recent weeks, driven by uncertainty over US import tariffs and supply concerns from major producers. The metal touched an all-time high near $6.90 per pound on August 6 before profit-taking pulled prices back.

Over 200,000 tons of copper arrived at US ports in July alone, the largest monthly inflow since 2014, as importers stockpile ahead of a potential tariff decision. This has left buyers elsewhere struggling to access available metal, further tightening inventories on the London Metal Exchange and in China.

The Democratic Republic of Congo recently banned exports of copper and cobalt concentrate, but analysts say this will have limited impact as most Congolese copper is already shipped as refined cathode rather than raw concentrate. Ivanhoe Mines clarified that a similar restriction has effectively been enforced for nearly a decade at its Kamoa Kakula complex.

Supply concerns from Chilean miner Codelco's El Teniente mine, where development work may remain suspended for up to two years due to geotechnical issues, have added to the squeeze. With the 6.50 area now the pivot that matters most, buyers and sellers will clash over the coming sessions to determine whether the broader trend reasserts itself toward new highs or the market needs more time to digest gains.