Copper price hits record high on concerns over tariffs and shortages

Unlock the Editor’s Digest for freeRoula Khalaf, Editor of the FT, selects her favorite tales on this weekly publication.Copper rose to a document excessive on Tuesday, crossing the $12,000 a tonne threshold for the primary time as issues about US tariffs and potential shortages fuelled a rally that has endured since October.The economic steel, which is seen as a bellwether for the well being of the worldwide economic system, rose 1 per cent to as a lot as $12,039 a tonne in morning buying and selling in London. Gold and silver additionally rose to contemporary document highs on Tuesday, pushed by geopolitical tensions and expectations that the US Federal Reserve will reduce rates of interest subsequent yr. Report copper costs have been being “helped by prospects of additional assist for the economic system in China”, stated John Meyer, an analyst at company advisory agency SP Angel. A weaker US greenback was additionally driving each treasured and base metals costs increased, he added. The pink steel has rallied to a sequence of document highs since October, when severe incidents at main mines hit manufacturing and triggered fears about provide shortages. Even earlier than that, analysts had been anticipating shortages to materialise within the coming years as demand grows. “Even in a world of two per cent world GDP development, we might anticipate sizeable deficits within the copper market over the following yr,” stated analysts at Jefferies this week.The latest rally has additionally been fuelled by rising issues concerning the potential for President Donald Trump’s administration to impose further import tariffs on copper subsequent yr. Present tariffs don’t goal copper cathode, however issues that future ones might need inspired merchants to ship massive portions into the US.Massive volumes have already constructed up within the US this yr, and the continued circulate in that course might “squeeze native provide in China and elsewhere on the earth”, stated Meyer. Copper is on monitor for its largest annual rise since 2009, having risen 37 per cent to date in 2025.