Copper Surges Amid El Niño Supply Risks and Tariff Uncertainty
Copper prices rose to $6.62 per pound on September 1, 2026, marking a 0.47% increase and extending its monthly gain to 1.69%. The metal's year-over-year gain reached 44.63%, outpacing the growth of US M2 money stock, which increased by 5.4% in July.
The National Oceanic and Atmospheric Administration (NOAA) confirmed that El Niño could become very strong in the second half of 2026, raising disruption risks for copper supply. Antofagasta cut its production forecast after a storm deposited 5 million cubic meters of snow at Los Pelambres, highlighting El Niño-related supply risk.
The London Metal Exchange (LME) inventories are rising, which could limit near-term gains, while tariff uncertainty redirects shipments to the US. The Fed's August 25 Money Stock Measures report placed seasonally adjusted US M2 at $23.218 trillion in July.