“Everyone needs copper, but we might not have enough supply. Copper is the new oil, and its significance to the U.S. economy may have already surpassed petroleum, making it the hottest commodity in the world,” said Phil Flynn, senior market analyst at Price Futures Group.
Copper is a critical material in manufacturing numerous everyday consumer goods—but its importance has taken on new meaning as President Trump considers copper imports a potential national security risk. Data from the U.S. Geological Survey shows that domestic copper supply has consistently fallen short of demand for at least the past five years. According to reports by S&P Global Market Intelligence and the Copper Development Association, the U.S. consumed an average of 1.7 million tons of refined copper annually from 2019 to 2023, with over 44% relying on imports.
Thanks to its excellent electrical and thermal conductivity, as well as corrosion resistance, copper is widely used in construction, automobiles, power generation, electronics, telecommunications, and shipbuilding. The International Copper Association states that one ton of copper can meet the electrical needs of 40 cars, 100,000 mobile phones, 400 computers, and power 30 households.
Spurred by news that the U.S. may impose early tariffs on key industrial metals, copper prices hit another record high on Wednesday. The most active COMEX contract surged from the previous settlement price of $5.2105 per pound to a new peak of $5.3740 per pound. The sharp rise in U.S. copper futures also widened the price gap between New York and London to approximately $1,700 per ton.
Just one day before copper reached its new high (equivalent to about $11,840 per ton), major traders at a Financial Times commodities summit in Switzerland predicted that prices could climb to at least $12,000 per ton this year amid growing global supply concerns.
Analysts, including those from Goldman Sachs, had previously anticipated that a 25% tariff on copper would be implemented between September and November.
