Copper surged to unprecedented heights on Tuesday as investors responded to growing concerns of a global supply squeeze. The three-month futures climbed by as much as 3.1%, reaching $13,387.50 per ton on the London Metal Exchange and setting a new record above Monday’s peak.
The current rally is heavily influenced by tighter inventory dynamics, particularly as market participants move copper supplies into the United States in anticipation of potential tariffs under the Trump administration. With inventories largely concentrated within the U.S., other markets are left increasingly short, intensifying the scramble for available metal.
Last year, threats of tariffs caused a spike in shipments to American ports. Although the Trump administration temporarily exempted refined metal from duties, the possibility of new levies has recently revived imports and pushed local U.S. prices to a premium.
Copper’s essential role in high-growth industries and the risk of escalating U.S. import controls have fueled optimistic forecasts from market watchers. Industry leaders warn that the drive to accumulate copper inventories in the U.S. could deplete supply for the rest of the world, creating conditions for a sustained upside move.
The U.S. Commerce Department is expected to provide an update on copper market conditions by June’s end, at which point a final decision on tariffs for refined metal may follow. Previous proposals suggested duties starting at 15% in 2027 and rising to 30% in 2028, though no definitive timelines have emerged.
Goldman Sachs suggests that current market fundamentals support sustained strong copper pricing, citing limited supply expansion. Despite elevated prices, demand from Chinese downstream sectors has reportedly remained steady.
