Copper prices jumped to a new record high of $11,540 per ton as concerns grew about potential tariffs on US imports extending to refined copper. Market concerns about supply shortages and rising delivery orders point to further depletion of LME inventories, leading to continued upward pressure on prices, noted Thu Lan Nguyen, head of FX and commodities research at Commerzbank.
Tariffs on US copper imports raise supply concerns
“At the beginning of the week, the copper price made another significant upward jump, reaching a new record high of $11,540 per ton. This time, fears of short-term supply shortages due to new US copper tariffs were the driving force. Over the summer, the US administration surprised the market by initially exempting refined copper from 50% tariffs, applying it only to semi-finished copper products and copper derivatives.”
“Accordingly, the price of copper traded on the COMEX collapsed, and LME warehouse inventories rebounded starting mid-year, as large quantities of the metal were shipped to the US in anticipation of the tariffs. However, there are now growing concerns that the tariffs could be extended after all, which could lead to another drain on LME inventory into the COMEX. These concerns have been exacerbated recently by increased orders for metal deliveries.”
“In fact, the US Secretary of Commerce originally suggested that tariffs on refined copper should also be imposed gradually – but only starting in 2027. Is it possible that the US administration could accelerate this process? Certainly. However, the initial goal may have been to allow the domestic copper industry sufficient time to expand production capacity in order to meet domestic demand. According to USGS data, the current domestic supply coverage rate is only about 50%. However, as long as these concerns persist and lead to further inventory depletion in the US. And on the London Stock Exchange For metals, the risk of renewed copper price increases remains high.”
