LME Copper Hits Record as US Tariff Talks Tighten Supply

Copper futures on the London Metal Exchange reached an unprecedented $14,533 per metric ton, posting a 0.8% increase that set a new all‑time high. Traders attribute the surge to looming U.S. tariffs on refined copper, prompting a shift of shipments toward American ports and a corresponding shortage in other regions. Year‑to‑date, copper has climbed roughly 17%, while the past year’s rise stands near 47%. In India, the September contract rose 1.21% to ₹1,403.50 per kilogram on the Multi Commodity Exchange, marking the highest intraday level observed so far. The rally underscores a longer‑running supply deficit, as mature mines find it harder to meet demand from data‑centre projects, renewable‑energy ventures, and expanding power‑grid infrastructure. Although the price jump stems more from tariff‑related supply constraints than from a surge in end‑user demand, the U.S. Commerce Department has yet to deliver a final recommendation to the White House, missing the June 30 deadline. Global copper reserves stay relatively high, yet a growing portion is concentrated in the United States, limiting the metal’s availability through the LME’s network. The market’s current backwardation points to anticipated short‑term shortages, even as forecasts for the first half of 2026 show a 1% decline in mine output and a 2.6% drop in concentrate production.