Copper Hits Record High Above $14,700 on U.S. Tariff Uncertainty

Copper prices surged to an all-time high on Tuesday, extending a four-day rally as uncertainty over a potential U.S. import tariff fueled speculative buying and dramatically shifted global inventories of the industrial metal.

Benchmark copper on the London Metal Exchange (LME) reached a record $14,779 per metric ton, with some analysts suggesting the psychologically significant $15,000 level could be tested this week.

Tariff Speculation Drives Rally

The primary driver for the price surge is a proposed U.S. tariff on refined copper imports, which would start at 15% in 2027 and rise to 30% in 2028. While the policy has not been confirmed, the uncertainty has incentivized a massive flow of copper into the United States.

This speculative positioning has attracted significant investment capital. "Will it get to $15,000 this week on Trump’s tariff confusion? Sure, that’s possible," said Tom Price, an analyst at Panmure Liberum, in a note. "You can pick any big number when there’s this much speculative capital behind a trading idea."

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Global Stockpiles Shift to U.S.

The tariff uncertainty has created a significant arbitrage window, leading to a buildup of inventory in the U.S. at the expense of other major hubs. This has tightened the physical market outside of the United States, providing further support for prices.

Key inventory data highlights this divergence:

• Copper stocks in COMEX-approved warehouses in the U.S. have reached a record high of 695,624 tons.
• Combined inventories on the LME and the Shanghai Futures Exchange (SHFE) now stand at just over 300,000 tons.
• This means U.S. stockpiles are now more than double the combined total of the world's other two main metals exchanges.