Copper Hits Fresh All-Time Highs in New York and London

Copper prices have surged to fresh records in London and New York, reaching a high of $14,858.50 a metric ton on the London Metal Exchange. This marks the third consecutive session where the benchmark has surpassed its previous peak of $14,779.00. Comex copper has also climbed to a record of $6.894 an ounce. The red metal has gained 19% this year, driven by a long-term supply-demand imbalance. As ageing mines struggle to keep pace with growing consumption from data centers, renewable energy, and power grids, copper bulls have touted this imbalance for years. The recent ascent was fueled by a shift of hundreds of thousands of tons to the US in anticipation of tariffs on refined copper imports by President Donald Trump. However, the Commerce Department's delay in submitting a report to the White House has left the LME market underserved. The US-Iran conflict has also clouded demand outlook, with tensions fuelling concerns about inflation. According to Guangzhou Futures Co., caution remains warranted at the macroeconomic level, with uncertainty about US inflation and shifting expectations for Federal Reserve policy potentially putting downward pressure on copper prices. Copper prices have risen as traders weigh persistent tariff fears and supply shortages against escalating hostilities in the Middle East.