02.01.202610:43:33UTC+00Copper Holds Surge Near Record High

Copper futures in the United States are currently trading near $5.70 per pound, following a 41% increase over the previous year. This price is just shy of the record-breaking high of $5.80 observed in late December. The uptick in copper prices is attributed to traders moving metal to the US amid escalating supply concerns. Operations at Freeport-McMoRan's Grasberg mine in Indonesia, which accounts for 3% of global production, were halted after a fatal incident, intensifying fears of supply disruptions. Additionally, supply uncertainty is exacerbated by labor protests at mining sites in Chile and Peru. These events have coincided with recent threats from US President Trump to impose tariffs on certain copper products, previously exempt from tariffs this year. As a result, copper has been increasingly directed to US warehouses from key trading centers in London and Shanghai. On the demand side, copper remains crucial due to its extensive use in electrification technologies, which many governments are prioritizing as they transition away from fossil fuels. Furthermore, the expansion in capital investment for data centers and AI infrastructure continues to fuel copper demand.