Copper has set a new record high, with three-month copper futures breaching the $13,000 per tonne level for the first time on the London Metal Exchange (LME). Copper return in one year is 40%, having jumped 11% in the last 30 days. Copper return in ten years is 11% CAGR.
In the spot market, Copper trades just under $6 per pound, after making a new record high of $6, amid expectations of a further tightening in global supply this year.
Why is the copper price rising
The sudden spike in the price of Copper could be attributed to the sentiments in the trading community. The possibility that the Trump administration could impose new tariffs on refined metals, rerouting shipments into the US and depriving major trading hubs like Shanghai and London of supply, is worrying traders.
The other big factor is the supply disruptions. The copper rally is fueled by global supply disruptions, causing a production decrease of 525,000-800,000 metric tonnes in 2025, hindered by labor disputes, environmental regulations, and operational challenges at major mining sites.
Also, a strong global demand, especially from data center expansion, renewable energy projects, and power infrastructure upgrades, is helping support higher prices.
Trump Tariffs
Market anticipation of tariffs created significant price differentials in copper exchanges throughout several months of 2025. According to the latest World Bank report on Commodities, ” In the lead-up to the U.S. tariffs, importers front-loaded purchases of aluminum and copper, contributing to short-term market tightening. For copper, accelerated shipments to the United States lifted onshore inventories ahead of the August tariffs and widened the price spread between the COMEX and LME exchanges.”
Tariff’s on Copper
In recent years, there have been more restrictions on the trade of metals, particularly Copper. These include 50% U.S. tax on imports of semi-finished copper products that went into effect in August 2025. Furthermore, phased taxes on imports of refined copper in 2027 and 2028 may result from a U.S. Department of Commerce examination of copper imports that is anticipated by June 2026.
In addition, an accident at one of the world’s largest mines in September may have caused a spike in copper prices. At the same time, infrastructure related to the faster-than-expected uptake of AI could push up the prices of copper.