Copper Soars to New Heights Amid Supply Constraints
Copper prices have surged to new heights, trading above $14,000 per ton on the London Metal Exchange (LME) and near record levels on the Comex exchange. According to ING analysts Warren Patterson and Ewa Manthey, this increase is driven by metal diversion into the US ahead of potential tariff decisions.
Tight physical markets, low inventories outside the US, and ongoing supply-side challenges are supporting prices and contributing to increased volatility in coming sessions.
The market has also been influenced by improving sentiment around the Middle East, which has led to a boost in industrial metals. Hopes for progress in negotiations over the Strait of Hormuz have weighed on the US dollar, while lower energy prices have reduced inflation concerns and improved the outlook for global growth-sensitive assets.