Tight physical markets, low inventories, and mine supply constraints drive copper to multi-year highs, though tariff risks loom.
Copper prices traded near record highs, surpassing $14,000 per tonne, as tight physical markets and tariff-driven stockpiling in the US bolstered demand. Low inventories and constrained mine supply, alongside ongoing disruptions, underpinned the rally.
Recent reports of the Democratic Republic of Congo restricting copper concentrate exports added to supply concerns, though the impact on refined markets remains limited. Prior periods saw similar tightness, but current conditions are exacerbated by geopolitical and logistical pressures.
Analysts caution that any setback in US tariff policies could trigger a price consolidation, despite supportive fundamentals.