Copper Soars to Record High as Tariff Fears and Supply Constraints Bite
Copper prices surged to new heights on September 8, hitting an all-time peak for the second consecutive session. The industrial metal rose on the London Metal Exchange (LME) for a fourth day, reaching US$14,617 per tonne. This price jump marks a significant increase of around 17% this year.
The tight supply and expectations of tariffs in the US have contributed to the surge in prices. A massive shift of refined copper towards the US has drained stockpiles in LME warehouses, triggering a severe squeeze last month and keeping the futures curve in steep backwardation.
China's demand for copper is also expected to pick up as the market enters its traditional peak season for manufacturing. Inventory levels in Shanghai Futures Exchange warehouses fell to their lowest since 2024 last week.