US Tariff Fears Drive Copper Prices to Record High

Copper prices surged to a record high on the London Metal Exchange as traders scrambled to move supplies into the United States ahead of potential US tariffs. The benchmark three-month copper futures rose by 0.8 per cent to $14,533 a metric tonne, surpassing its previous record of $14,527.50 set in January.

The metal has seen significant gains this year, with prices up about 17 per cent and 47 per cent over the past 12 months. The rally is largely driven by tariff-related flows rather than an increase in end-user demand.

Global inventories remain relatively high, but copper stocks have become concentrated in the United States, leaving less metal available through the LME network. This has led to spot copper trading at a premium to three-month futures, a market structure known as backwardation that signals tight near-term supply.