Tariff Threat Pushes Copper Prices to Record High

The copper market is facing unprecedented uncertainty due to the looming threat of US import tariffs. As of Tuesday, three-month copper prices on the London Metal Exchange had reached $14,343 per metric ton, mere steps away from an all-time record high of $14,527.50.

Despite no global shortage of copper, analysts say that the prospect of tariffs has drained inventories elsewhere and pushed prices to extreme levels. A large-scale order for 65,400 tons of metal was withdrawn from LME warehouses in recent days, further exacerbating the issue.

'At best, it's a balanced market,' said Robert Edwards, principal copper analyst at CRU, assuming that copper stockpiled in the US is no longer available. 'If imports keep coming in as they have been, then it's going to look like a deficit market in reality.'