Copper Hits Fresh Record on Rising Risk of Tariff-Fueled Squeeze

Group 1 - Copper prices have surged to a record high, trading above $11,400 a ton, driven by increased orders in LME warehouses and concerns over potential US tariffs leading to a global supply squeeze [1][2] - The LME's global benchmark price for copper has increased by over 30% this year, with US futures rising even more as traders anticipate tariffs on primary copper forms [2][3] - The announcement of potential tariffs by President Trump has significantly impacted the copper market, leading to record-high US copper imports and increased shipments to American ports [3][4] Group 2 - Major metals trader Mercuria Energy Group Ltd. has warned that current trade dynamics could lead to a significant global supply squeeze by early next year, predicting further increases in copper prices [5] - The copper market is facing supply challenges due to mine outages in regions like Chile and Indonesia, tightening the market despite weak demand [6] - Negotiations between Chinese smelters and miners for 2026 supply are proving difficult, with miners currently holding the upper hand in these discussions [6]