Copper prices hit record high on LME: Tariff expectations drive price to 14,533 dollars per ton

Copper prices hit a historic peak on the London Metal Exchange (LME) amid expectations that the U.S. may expand customs duties on refined copper imports. Copper on the LME rose by as much as 0.8 percent to 14,533 dollars per ton, surpassing the previous record level recorded in January.

One of the main reasons for the rise in markets is cited as the potential tariff steps regarding copper imports by the U.S. President Donald Trump administration. Although nearly two months have passed since the U.S. Department of Commerce submitted its report containing recommendations on whether it is necessary to impose customs duties on copper imports to the White House, investors continue to price in the possibility of tariffs.

Copper prices have recorded a 17 percent increase over the last year. This rise has been influenced not only by short-term tariff expectations but also by concerns regarding long-term supply-demand imbalances. The supply outlook for copper, which is among the critical metals for industrial production, energy infrastructure, and electrical technologies, is being closely monitored in global markets.

Although global copper stocks are generally at high levels, the decrease in the amount of metal in the LME's global network has created pressure on prices. The concentration of a large portion of stocks in the U.S. has strengthened the perception that available supply in the market is tightening in the short term.

This picture has increased the pressure on investors with short positions, contributing to prices being carried to record levels even during a period when demand remains weak. Moving forward, the direction of the markets will be determined by the U.S.'s potential tariff decisions and changes in LME stocks.