Tariff Threat Sends Copper Prices Soaring Toward Record Highs
Copper prices are on the verge of hitting record highs due to the threat of U.S. import tariffs, analysts say.
The three-month copper price on the London Metal Exchange rose to as high as $14,343 per metric ton on Tuesday, just shy of the record $14,527.50.
Orders to withdraw 65,400 tons of metal from LME warehouses in recent days contributed to the rally, but analysts argue that this is not due to a global shortage of copper, which is crucial for power grids, electric vehicles, and AI data centers.
The incentive to ship copper to the U.S. has drained inventories elsewhere, creating a situation where what should have been a surplus market now looks tight.
Robert Edwards, principal copper analyst at CRU, said that if imports continue at their current pace, 'it's going to look like a deficit market in reality.'