Copper Soars to Record High Amid Supply Shortages and Tariff Fears

Copper prices have surged to new heights for the second consecutive session on concerns over tight supply and fears of tariffs. The industrial metal has risen for a fourth day on the London Metal Exchange, reaching an all-time peak of $14,617 per ton.

The rally is driven by a mismatch between constrained mine supply and growing demand from data centers, renewable energy equipment, and power grids. This trend has been exacerbated by the massive shift of refined copper to the US, where it can capture higher prices due to tariff prospects.

This shift has drained stockpiles in LME warehouses, leading to a severe squeeze last month and keeping the futures curve in steep backwardation, an indicator of supply shortages. Inventories in Shanghai Futures Exchange warehouses have also fallen to their lowest since 2024, while demand from China is expected to pick up during the peak manufacturing season.

Jia Zheng, a trading manager at Suzhou Chuangyuan Harmony-Win Capital Management Co., believes it should be easy for copper prices to reach $15,000. Orders from State Grid Corp. of China are reportedly looking good, based on client conversations.