Record-Breaking Copper Prices Spark Tariff Concerns

Copper prices have hit a fresh record high of $6.7270 per pound for September delivery on the Comex exchange, exceeding $14,830 per tonne and representing a near four percent premium over London Metal Exchange (LME) three-month prices.

This surge in price is partly due to US tariff threats, which have led to an increase in metal stockpiling in American warehouses. As a result, Comex inventories have climbed for 46 consecutive days to a record high of 675,185 tonnes.

The sharp re-rating of pure-play copper producers such as Southern Copper and Zijin Mining suggests that equity markets are assigning a premium to scale copper producers relative to diversified majors like Rio Tinto. The proposed US tariffs on refined copper could further drive up prices, with a 15 percent tariff set to take effect in 2027 and increase to 30 percent in 2028.