Three-month copper futures on the London Metal Exchange (LME) have broken the $13,000 per tonne threshold for the first time, setting a new record high. After rising 11% in the last 30 days, the copper return in a year is 40%. In 10 years, the return on copper will be 11% CAGR. After reaching a new record high of $6, copper is currently trading little under $6 a pound on the spot market amid predictions that the world’s supply will continue to tighten this year.
The sentiments of the trading community may have contributed to the abrupt increase in the price of copper. Traders are concerned that the Trump administration could impose new taxes on refined metals, rerouting shipments into the US and depriving major trading hubs like Shanghai and London of supply.
Supply disruptions are the other major reason. Global supply disruptions are driving the copper rally, which will result in a 525,000–800,000 metric tonne drop in production in 2025 due to labor disputes, environmental laws, and operational difficulties at large mining sites.
Higher costs are also being supported by a strong worldwide demand, particularly from data center development, renewable energy initiatives, and power infrastructure upgrades.
The trading of metals, especially copper, has been subject to tighter regulations in recent years. These include the August 2025 implementation of a 50% U.S. tax on imports of semi-finished copper products. Additionally, a U.S. Department of Commerce review of copper imports is expected by June 2026, which might lead to gradual levies on imports of refined copper in 2027 and 2028.
Furthermore, a September accident at one of the biggest mines in the world might have contributed to a jump in copper prices. Infrastructure associated with the quicker-than-anticipated adoption of AI could also raise copper costs.
