Copper Price Hits All‑time High on Supply Constraints and Trade Fears

The copper price climbed to a fresh record on Tuesday (January 6), with persistent supply disruptions and trade uncertainty pushing the metal to a nearly 30 percent rally since October.

Benchmark three month copper on the London Metal Exchange (LME) rose as much as 3.1 percent in early trading to an all‑time high of US$13,387.50 per metric ton before settling slightly lower, but still above US$13,200.

The jump marks another milestone in a rally that first saw copper breach US$12,000 late in December last year.

Copper is widely used across the industrial economy, from construction and power infrastructure to electric vehicles and data centers that support artificial intelligence growth. Analysts attribute the gains to a combination of production setbacks at major mines and heightened concerns that prospective US trade tariffs could further disrupt flows.

Large copper-mining operations such as Freeport-McMoRan's (NYSE:FCX) Grasberg complex in Indonesia have faced challenges since last year, while a strike at Capstone Copper's (TSX:CS,ASX:CSC,OTC Pink:CSCCF) Mantoverde mine in Chile has reduced output prospects in one of the world’s top copper‑producing nations.

The threat of new tariffs under the Trump administration has also shaped expectations. Traders have moved to ship refined copper into the US ahead of any potential levies, tightening supply elsewhere. Furthermore, data show copper stocks in Comex warehouses have jumped to more than 450,000 metric tons, well above last year’s levels.

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Securities Disclosure: I, Giann Liguid, hold no direct investment interest in any company mentioned in this article.

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