Copper prices in New York climbed to a record high on Wednesday as increased bets on US tariffs and tightening global supplies pushed the industrial metal higher.
The most-traded Comex copper contract surged to US$6.73 ($9.54) a pound, surpassing the previous record set in mid-May. The contract is now up about 19% this year.
The rally was driven largely by speculation over potential US tariffs on copper imports, according to TD Securities senior commodity strategist Ryan McKay.
“Record imports and a strong arbitrage mean the fragmented market should continue to support prices until the tariff outlook becomes clearer,” McKay told Bloomberg.
In London, copper rose 1.4% to US$14,060 a tonne, less than US$500 away from the record reached in January.
The widening price gap between US and international markets has encouraged large volumes of copper to flow into American ports, tightening supplies elsewhere.
“The US basically got all the world’s supply of copper sitting in its back door,” Jeff Currie, senior adviser at Carlyle Group and former Goldman Sachs commodities chief, also told Bloomberg.
Supply concerns have also continued to support prices.
In Chile, severe winter storms have disrupted mining operations, while state-owned producer Codelco has warned it could miss production targets and postponed an expansion of its flagship El Teniente mine.
The conflict in the Middle East has also disrupted shipments of sulphuric acid from the region. The chemical is a key input in copper production and is used in operations responsible for about 15% of global copper output.
Write to Jackson Chen at Mining.com.au
Image: Glencore
