The price of copper is once again nearing an all-time high, driven by growing concerns over US trade policies and market shifts in response to tariffs. On Monday, copper contracts in New York (COMEX) briefly touched $5.18 per pound—just cents away from the record $5.20 per pound set nearly a year ago—before settling around $5.12 by midday. At approximately $11,288 per tonne, the US copper price maintains a premium of around $1,500 over its London Metal Exchange (LME) counterpart.

Why Is Copper Surging?

g?Copper, often regarded as a bellwether for global economic health, has surged over 27% since the start of the year. The rally intensified following an executive order by US President Donald Trump, who last month initiated an investigation into copper imports—a move widely interpreted as a step toward imposing tariffs on the metal.

As a result, traders have been rushing to move large quantities of copper into US borders to avoid potential trade restrictions. Analysts at Mercuria Trading estimate that nearly 500,000 tonnes of copper are currently en route to the US, compared to the usual monthly imports of around 70,000 tonnes. This has led to a sharp increase in COMEX premiums relative to LME prices.

Impact on Businesses

For industries dependent on copper—including construction, electronics, and renewable energy—this price surge presents both challenges and opportunities:

1. Manufacturers Face Higher Costs: Companies relying on copper as a raw material, such as electrical wiring producers and automakers, may experience increased production costs, potentially leading to higher consumer prices.

2. Stockpiling Strategy: Businesses may consider securing inventory at current prices before tariffs or further supply chain disruptions push costs even higher.

3. Investment Opportunities: The rising price of copper is attracting investors, with mining companies and commodity traders benefiting from the bullish trend.

Future Outlook

With the US potentially imposing tariffs on copper imports, market volatility is expected to persist. Traders will be closely watching policy developments, while manufacturers may seek alternative sourcing strategies to mitigate cost increases.

For business leaders, staying ahead of these price movements is crucial for financial planning and supply chain management. As the situation evolves, companies must remain agile and proactive in navigating the global commodities landscape.

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