Copper Soars to Record Highs Amid Supply Fears & US Tariffs

• Copper futures on the London Metal Exchange (LME) breached $13,000 per tonne, hitting a record high due to strong demand and tightening supply.
• Fears of potential US tariffs led to large copper shipments to the United States, causing reduced availability and intensifying supply pressures in other regions.
• A workers' strike at Chile's Mantoverde copper mine and geopolitical factors like US actions against Venezuelan President Nicolás Maduro further fueled price increases.
• The global energy transition, driven by electric vehicles and renewable energy, provides strong long-term demand, with prices rising 42% in 2025.
• Despite a projected market surplus, an imbalance where half of the world's copper inventory is in the US (for less than 10% global demand) suggests persistent tightness and a potential 2026 shortfall.

Why It Matters: Copper prices hit record highs driven by supply concerns, US tariffs, and robust demand from the energy transition.