Copper Surges to Fresh All-Time Highs Amid Tariff Fears and Supply Shortages

Copper prices have surged to fresh all-time highs in both New York and London, reaching $14,858.50 per metric ton on the London Metal Exchange (LME) and $6.894 an ounce on Comex.

The red metal has gained 19% this year, largely due to a long-term supply-demand imbalance driven by growing consumption from data centers, renewable energy, and power grids.

Tightening physical supply outside the US has also contributed to the price increase, as traders have been shipping copper to American shores in anticipation of tariffs on refined copper imports. The Commerce Department's delayed report on whether these levies are necessary has left the LME market underserved, with hundreds of thousands of tons shifted to the US.

Escalating hostilities in the Middle East and rising Brent crude prices above $100 a barrel have added to concerns about inflation and downward pressure on copper prices. Guangzhou Futures Co. warned that 'caution remains warranted at the macroeconomic level' due to uncertainty around US inflation and shifting expectations for Federal Reserve policy.