Copper Price Hits New High Amid US Demand Surge and Chile Supply Disruptions

Record prices for copper have been set on the London Metal Exchange (LME), with the 3-month forward price reaching an all-time high of over $14,530 per ton. According to Commerzbank's Norman Liebke, this surge is driven by strong demand from the US, as inventories on the COMEX have risen significantly due to planned copper import tariffs.

The US Department of Commerce had announced plans for these tariffs, but they have yet to materialize by the end of June. As a result, US companies are stockpiling copper, further driving up demand and prices.

Copper exports from Chile, the world's largest producer, have also been impacted by supply disruptions. Weather-related issues at mines and port problems have cut exports to $4.62 billion in August, a 14% decline from July and a 3.2% decline from last year. This represents about a quarter of global mine production.