Copper Prices Hit Record High Amid US Tariff Risks and Mine Collapse

International copper prices have hit an all-time high amid expectations of expanded U.S. tariffs and disruptions at copper mines.

According to Bloomberg on the 7th local time, three-month copper futures on the London Metal Exchange (LME) temporarily surged 0.8% to $14,533 per ton, surpassing the previous record high set in January of this year.

Copper has risen 47% over the past 12 months.

The background is cited as a long-term supply and demand imbalance, as aging large-scale mines fail to keep up with the increasing demand from data centers and renewable energy generation.

Copper is an essential raw material for industries such as semiconductors, batteries, and power grids, and demand has recently surged in AI data centers and the defense sector.

However, the recent price increase is more heavily influenced by hundreds of thousands of tons of refined copper being front-loaded into the U.S. this year to capture profits in anticipation of potential U.S. tariffs.

The U.S. Department of Commerce was scheduled to submit an investigation report containing whether to impose tariffs on refined copper by June 30, but has failed to reach a conclusion for over two months.

Amidst this uncertainty, copper inventories on the New York Mercantile Exchange have swelled nearly eightfold from 80,000 tons in February of last year to 652,200 tons recently, while LME inventories are being depleted.

Cristian Cifuentes, a senior analyst at the Chilean Copper and Mining Study Center (Cesco), said, "The possibility of tariffs is having a greater impact on trading than final demand excess," adding, "It is a case of localized shortage rather than global demand excess."

In addition, Chile, the world's largest copper producer, is experiencing operational disruptions due to a local mine collapse accident and a decline in copper ore grade.

Chile's copper export value decreased to $4.63 billion in August from $5.37 billion in July, marking the lowest level in over a year.

Bloomberg pointed out that if Chile's copper production does not rebound in the second half of the year, global mine supply is projected to record an annual decline for the first time since 2017.

(Photo: AP, Yonhap News)
※ Please note: This article was translated by AI and may contain errors.