Copper Climbs to Record Highs

Copper prices surged to an all-time high this week, with futures in New York touching $5.374 per pound before settling at $5.24—a record close.

The 30% rise in copper prices since the start of the year has outpaced gold’s 16% gain and left major U.S. stock indexes lagging. The rally is being driven less by fundamental industrial demand and more by speculative stockpiling as traders brace for possible U.S. tariffs. 

With analysts speculating that tariffs could be introduced within weeks, buyers are rushing to front-run potential levies, diverting hundreds of thousands of tons of supply toward U.S. ports.

The tariff buzz follows President Trump’s recent executive order directing a review of copper imports under national security grounds. While copper isn’t classified among the U.S. Geological Survey’s 50 critical minerals, the Department of Energy flagged it in 2023 as essential for energy infrastructure. 

Its widespread use in construction, electronics, and clean tech makes it central to long-term industrial policy—and now, to short-term market volatility.

What Does This Mean for Me?

The sudden demand spike has created a 17% premium for New York copper futures over London counterparts, a divergence that highlights how tariff speculation is unsettling normal price dynamics. 

Some estimates peg April copper shipments to the U.S. at over 500,000 tons—more than seven times the monthly average. Analysts expect imports to increase by at least 200,000 tons this month alone.

The pressure on supply chains is mounting. While Wall Street eyes Washington for clarity, analysts caution that prices may dip once the U.S. demand surge levels off. Until then, copper remains the commodity to watch.