Copper prices hit a record at more than $11,000 per tonne as global trade forces undergo severe dislocation. Copper futures gained 0.3% to $11,270 per tonne Thursday 20/03/2025.
That’s a staggering 13% above London Metal Exchange (LME) prices, where the metal has just breached the $10,000 mark.
This is a cross-region repricing round of probable US tariffs, stated Wei Lai, Zijin Mining Investment Shanghai Co.’s assistant head of trading, in a comment to Bloomberg.
The rally followed US President Donald Trump’s recent tariff call on trade, with the Commerce Department investigating copper imports.
Although the final tariff recommendations are due later this year, market strategists at Goldman Sachs and Citigroup are calling for a 25% import tariff on copper in later 2025.
The US tariff threat has led to a rush to ship supplies to America, where demand remains robust. More than 100,000 tons of copper are said to be being redirected to the US by some of the largest traders, including Glencore and Trafigura Group.
This has left other regions short, pushing buying sentiment to all-time highs.
Global Market Impacts
The copper market is also experiencing the shockwave passing through global supply chains. US producers are already taking the hit, with prices reflecting the possible shock of humongous tariffs. Trade rebalancing has drained inventories from the LME’s global warehouse network, revealing the vulnerability of global markets to shock policymaking.
The copper rally is a reflection of broader stress in supply chains. Smelters are struggling to procure raw materials, as expansion of green industries has raised demand for the versatile metal.
Additionally, the US dollar weakness since the re-election of Trump has also provided an added boost to copper prices, providing added steam to the ongoing rally.
Short-run solutions exist for speculators that capitalize on price discrepancies, but long-run outcomes are uncertain.
The market’s future will rest, in large measure, in the hands of the outcome of trade policy negotiations, technological developments, and world supply and demand.
A Critical Metal for the Future
The trends now indicate the pivotal position copper is taking in traditional sectors and the diversification towards green technology.
From electric vehicles to renewable facilities, the future of the metal can only become more radiant from here on out. But to weather today’s volatility, traders, manufacturers, and policymakers will need to tread very cautiously.
As the world looks on at this drama in the making, copper’s record run serves to remind us of the interdependence of international trade and the long-reaching effects of political choices on the markets we use daily.
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