By Giulia Petroni
Copper prices climbed to a record high, soaring above $13,000 a metric ton for the first time driven by concerns over tightening supply and tariff uncertainty in the U.S.
In afternoon European trade on Tuesday, futures on the London Metal Exchange rose 0.6% to $13,172 a ton after reaching a high of $13,387.50 earlier in the session. Copper surged 42% last year, marking its biggest annual gain since 2009.
The rally has been fueled by a series of mine disruptions and heavy stockpiling in the U.S. amid concerns that the Trump administration could impose tariffs on refined metal imports this year.
The U.S. Secretary of Commerce is due to provide an update by June 30 that will determine whether the administration moves ahead with a universal duty on refined copper of 15% in 2027 and 30% in 2028. The prospect of such import restrictions has prompted traders to step up shipments to the U.S. in recent weeks, squeezing supply elsewhere.
"The downside risk to copper is a reversal of flows to the U.S. if the refined metal is again exempt from tariffs, which could push inventory into global markets," analysts at ING said.
At the same time, a strike at Chile's Mantoverde mine has intensified supply concerns as low inventories across major exchanges leave little room to absorb further disruptions.
The rise in base and precious metals boosted commodity currencies earlier, with the rand reaching a three-and-a-half year high against the U.S. dollar, and the Australian dollar nearly hitting a 15-month high before moderating gains.
London's miners also rose, with Antofagasta up 0.9% and Hochschild Mining gaining 1.5%. Commodity major Glencore traded 0.8% higher, while Anglo American rose 1%.
Write to Giulia Petroni at giulia.petroni@wsj.com
(END) Dow Jones Newswires
01-06-26 0737ET
