Copper prices have once again hit records in both London and New York as concerns over potential US tariffs and tightening global supplies continue to fuel the rally.
The three-month copper contract on the London Metal Exchange (LME) rose almost 2% to US$14,858.50 ($20,585) a tonne, surpassing the previous record of US$14,779 set a day earlier.
The LME benchmark has now reached a new record in each of the past three sessions, extending one of the strongest commodity rallies of the year.
In the US, Comex copper futures also climbed to a record of US$6.894 a pound.
Copper has gained nearly 20% this year, supported by expectations of a widening market deficit as mine supply struggles to keep pace with growing consumption.
Mine supply struggles
In the near term, operational issues at major copper projects are adding to supply concerns.
Global mined copper production is at risk of recording its first annual decline since 2017 unless output recovers during the second half of the year.
Preliminary figures released last month by the International Copper Study Group show global copper mine production fell 1.1% during the first half of 2026 as output declined sharply across several major producing countries.
The weakness has intensified concerns about the industry’s ability to bring enough new supply to market as longer-term demand rises from electrification, power grids, renewable energy, and data centres.
US tariff fears tighten physical market
Copper’s recent rally has also been driven by tightening physical supplies outside the US as traders continue to move large volumes of refined metal to American shores in anticipation of potential tariffs.
US President Donald Trump is considering tariffs on refined copper imports, prompting traders to redirect hundreds of thousands of tonnes of metal towards the US.
The Commerce Department was due to submit a report to the White House at the end of June recommending whether tariffs were necessary, but missed the deadline.
The prospect of tariffs has already distorted global copper flows, leaving less metal available in the LME market and adding further pressure to prices.
Write to Jackson Chen at Mining.com.au
Image: Almalyk MMC
