Copper hits record high above $14,500 on US tariff fears

Copper prices hit record highs on the LME, driven by expectations of wider US tariffs and tighter global availability. Supply concerns, declining mine output and strong demand from data centres, renewables and power grids supported the rally, while Hindustan Copper shares surged

New Delhi: Copper hit a record high on the London Metal Exchange as expectations of wider US tariffs on refined metal drove traders to move supplies into the United States, tightening availability elsewhere. Benchmark three-month copper futures rose as much as 0.8 per cent to $14,533 a metric tonne, surpassing the previous record of $14,527.50 set in January.

In addition, the metal is up about 17 per cent this year and 47 per cent over the past 12 months. In the domestic market too, copper futures (September) jumped as much as 1.21 per cent or Rs 16.8 to hit an intraday high of Rs 1,403.50 by 10:30 am on the Multi Commodity Exchange (MCX).

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The rally reflects a longer-term mismatch between supply and demand with ageing mines struggling to keep pace with consumption from data centres, renewable energy projects and power grids. But the latest surge has been driven more by tariff-related flows than a sudden increase in end-user demand.

Moreover, the US Commerce Department was due to advise the White House on the need for tariffs on refined copper, but no final decision has been disclosed more than two months after the June 30 deadline.

While global inventories remain relatively high, copper stocks have become concentrated in the United States, leaving less metal available through the LME network.

Similarly, spot copper continues to trade at a premium to three-month futures, a market structure known as backwardation that signals tight near-term supply. However, global copper mine output fell nearly 1 per cent in the first half of 2026, while concentrate production declined 2.6 per cent, as per reports. Additionally, shares of state-owned Hindustan Copper Ltd surged more than 5 per cent on Tuesday, touching an intraday high of Rs 537.35 on the BSE.