Copper prices have soared to an all-time high, surpassing $12,000 per metric ton due to supply disruptions and concerns over potential US import tariffs. Benchmark three-month copper futures on the London Metal Exchange (LME) touched $12,159.50 before settling near $12,065, reflecting a sharp rally in industrial metals.
Year-to-date, copper has gained over 35%, marking its strongest annual increase since 2009. Analysts attribute the surge to tight global supply as major mines face production challenges. This has reduced available stock in the market, pushing prices higher.
Adding to the pressure are fears of US import tariffs on copper. Traders and buyers have been stockpiling in anticipation of higher costs, increasing demand in the United States while leaving less copper available elsewhere. This has intensified the upward price movement.
Global demand is also playing a role. Copper is widely used in electric vehicles, renewable energy projects, and data centers, all of which are expanding rapidly. These structural demand factors are adding stress to supply chains that are slow to expand.
Economic factors are supporting the rally as well. Expectations that the US Federal Reserve may cut interest rates could weaken the dollar, which typically boosts commodity prices. Traders are closely watching for changes in monetary policy that could further influence copper markets.
Market experts warn that if production issues continue and demand keeps rising, copper could remain in deficit. While gold and silver have also risen this year, copper’s industrial importance makes its price movement a key indicator for the global economy, particularly for technology, construction, and energy sectors.
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