London copper prices surge to $14,000 per ton as U.S. tariff uncertainty and tight supply drive short-term scarcity.
Copper prices climbed to a two-month high near $14,000 per ton in London, driven by uncertainty over U.S. tariffs and dwindling global inventories. Steep backwardation on the London Metal Exchange signals acute short-term scarcity, exacerbated by record July shipments to U.S. ports totaling over 200,000 tons.
Constrained mine output and strong U.S. demand have drained supplies elsewhere, leaving the market vulnerable to further squeezes. Year-to-date gains of about 12% reflect trade policy speculation and optimism around energy transition and AI infrastructure, though elevated prices have softened some Chinese demand.
The market remains exposed to potential tariff decisions, which could redirect flows but fail to address underlying supply constraints. Traders are closely monitoring inventory levels and policy developments as backwardation deepens.