Copper Hits Record $13,000 as US Import Rush Fires Up Bulls

Core Insights - Copper prices are surging due to tighter supplies and a risk-on sentiment in broader markets [1] - Concerns over potential US tariffs have led to increased shipments to the US, impacting global supply dynamics [2] - A strike at the Mantoverde mine in Chile highlights risks to shipments amid rising global demand [2] Supply and Demand Dynamics - Copper futures in London rallied by up to 3.5%, nearing the previous peak of just below $13,000 per ton [2] - The global refined copper market was estimated to be in surplus in 2025, but US tariffs distorted metal and inventory flows, increasing US imports [5] - Analysts predict a global copper shortage of over 100,000 tons in 2026 due to overall supply shortfalls and regional dislocation caused by tariffs [7] Market Trends - The cash-to-three month spread in London remains in backwardation, indicating near-term tightness in the copper market [6] - Copper prices rose by 3% to $12,844 per ton, while aluminum also saw a rise of 1.8% to $3,069 per ton, reflecting a tightening supply outlook [8]