Tariff Fears Send Copper Prices Soaring to 12-Week High

Copper prices have surged to a 12-week high, reaching $14,082. The increase is largely due to concerns over US tariffs, which have led traders to pull metal into US warehouses and reduce inventories elsewhere.

This has created a pricing gap between the COMEX and London Metal Exchange (LME) markets, with COMEX trading above LME. As a result, inventories on the LME have fallen to 231,825 tons, their lowest since mid-February.

The premium for nearby supply is scarce, with the LME's 'cash' price $103 a ton above the three-month contract, the biggest premium since October. This phenomenon is known as backwardation, indicating that nearby supply is scarce.