Copper price reaches record high on the London Metal Exchange

The price of copper on the LME metal exchange has reached a record high. The tight supply outside the USA is driving up the price of the industrial metal. But that's not the only reason.

Dusseldorf. The tight supply outside the USA is driving the price of copper to a new record high. Copper for delivery in three months rose in price on the London LME metal exchange by almost two percent to up to $14,779 per ton.

According to traders, the background is a strong outflow of copper to the USA. Tariffs on the industrial metal are expected there. This is leading to a supply shortage in markets outside the US, says an analyst at Chinese broker Everbright Futures.

“We are in a tight market right now,” Evy Hambro, global head of thematic and sector investing at BlackRock International, told Bloomberg news agency, noting that the extent of supply shortages was well above normal levels. “This has also been reinforced by some of the tariff discussions in the US.”

Copper inventories in LME warehouses have fallen by almost 40 percent since the end of May. In addition, storms in Chile and the situation in the Middle East fueled concerns about supply, says Macquarie analyst Alice Fox. Copper has increased by around 17 percent this year, with AI expansion, solar parks and power grids driving demand for copper.