On Monday (March 24), copper prices edged closer to an all-time high as the metals market continued to react to concerns over Trump’s tariff policies. The most heavily traded copper contract in New York came within two cents of its record high of $5.20 per pound, set nearly a year ago, before retreating to around $5.12 by midday. U.S. copper prices stood at approximately $11,288 per ton—about $1,500 higher than prices in London.
Since the start of the year, copper prices have surged 27% amid tariff-related pressures. The rally accelerated after U.S. President Trump signed an executive order last month to investigate copper imports—a move seen as a precursor to potential tariffs.
The premium for U.S. copper over London Metal Exchange (LME) prices has also hit a record high. This unprecedented price gap has prompted global commodity traders to divert large volumes of copper shipments from Asia to the U.S. Analysts at trading group Mercuria estimate that around 500,000 tons of copper are currently en route to the U.S., compared to the country’s typical monthly imports of just 70,000 tons.
The price surge coincides with tightening supply. Chronic underinvestment and declining smelting capacity have exacerbated a global shortage of raw copper. Mercuria predicts that copper demand will outstrip supply by 320,000 tons this year. With U.S. inventories dwindling, many countries may soon compete for limited supplies.
Kostas Bintas, head of metals trading at Mercuria, said: “The massive influx of copper into the U.S. will leave the rest of the world—especially major copper-consuming nations—facing severe short-term shortages. We’re witnessing something extraordinary in the copper market. Is it unreasonable to expect prices to reach $12,000 or $13,000? It’s hard to pin down an exact figure—we’ve never seen anything like this before.”
Recently, China—the world’s largest copper producer and consumer—announced further stimulus measures, pushing prices even higher. According to insiders, the country also plans to significantly replenish its strategic reserves of industrial metals, including copper and cobalt, this year to strengthen the resilience of critical mineral supply chains.
