What is driving copper prices to a record high on the London Metal Exchange?

Copper prices surged to an all-time high on the LME—reaching $14,533 per ton—due to a combination of long-term supply-demand imbalance and short-term tariff-driven trading activity; specifically, anticipation of US tariffs on refined copper imports has spurred massive arbitrage-driven shipments to the US, depleting LME global inventories and creating a severe physical shortage that pushed spot prices into backwardation, despite tepid overall demand and macroeconomic headwinds.

Why are US copper stockpiles unusually high while LME inventories are critically low?

Hundreds of thousands of tons of copper have been shipped to the US this year by traders exploiting the persistent premium for Comex futures over LME prices—especially after President Trump’s February 2024 proposal of copper tariffs—leading to a sharp concentration of global stockpiles in the US and a dramatic drawdown in the LME’s global warehouse network, which underpins its benchmark contracts.

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Copper prices hit a record $14,533 per ton on the London Metal Exchange amid tariff fears and supply constraints. Major miners reported profit increases despite operational challenges, driven by strong demand from data centers and renewable energy sectors.

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