Copper Prices Approaching Record Highs: Here’s Why

Copper Prices Are Rising

In London, copper futures contracts are trading just below $13,000 per ton with a 3.5% increase, approaching last week's record levels.

U.S. Customs Duties and Global Demand

Concerns about potential tariffs from the U.S. are contributing to increased shipments of copper to the country. At the same time, the strike at the Mantoverde mine in Chile indicates that there may be risks to shipments during a time of rising global demand. These developments are supporting copper prices.

General Market Situation

As of Monday, all base metals gained value. Stocks also showed an upward trend, driven by positive expectations for technology shares. Additionally, the U.S. detaining Venezuela leader Nicolas Maduro over the weekend has been factored into broader market implications.

Analysts' Opinions

China Securities analysts, led by Wang Jiechao, commented, "When general supply shortfalls combine with regional disruptions caused by U.S. tariffs, copper prices are rising. A shortfall of over 100,000 tons is expected in the global copper market by 2026."

Price Numbers

Lastly, three-month copper is trading at $12,844 per ton on the London Metal Exchange, with a 3% increase.

Increase in Aluminum

With a tightening supply outlook and expectations of long-term demand growth, aluminum prices have risen by 1.8%, reaching $3,069 per ton, the highest level since April 2022.