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Copper Surges to Record Highs on Tariff Fears
1 Jan
Summary
- Copper reached record highs, rallying 42% on the LME this year.
- Traders are shipping copper to the US anticipating potential tariffs.
- Underlying demand in China has softened despite price gains.
Copper prices have concluded 2025 on a high note, achieving a series of all-time highs and registering a substantial 42% rally on the London Metal Exchange. This performance marks copper as the top performer among industrial metals traded on the exchange.
The recent price surge is largely attributed to traders actively shipping copper to the United States in anticipation of potential tariffs. This activity revived an arbitrage trade that had previously impacted the market, creating scarcity elsewhere.
This speculative trading has tightened copper availability globally, even as underlying demand in China, a major consumer, has softened. The price spread recently narrowed, influenced by a strong December rally observed on the LME.
