COPPER has extended its powerful rally, breaking through $13,000 per ton for the first time as traders rushed to ship metal to the United States ahead of potential tariffs.
Benchmark prices jumped 1.5% to a record $13,187/t on the London Metal Exchange, following Monday’s four percent gain. The metal has now advanced more than 20% since mid-November.
“The historic US inventory build is still in the driving seat of global copper prices,” said Helen Amos, commodities analyst at BMO Capital Markets in an article by Bloomberg News on Tuesday.
The rally has been fuelled by persistent fears over import tariffs from President Donald Trump, causing US copper prices to trade at a premium to London and triggering a scramble to stockpile metal. A strike at Chile’s Mantoverde mine added further momentum to speculative activity.
“The reality is this is a speculative money-led bid as the market sees further topside, especially during the first quarter of 2026,” said Al Munro, senior base metals strategist at Marex.
Supply disruptions, including a fatal accident at Indonesia’s second-largest copper mine and underground flooding in the Democratic Republic of Congo, have tightened global availability. The US now holds roughly half of global inventories whilst accounting for less than 10% of demand, raising concerns about shortages elsewhere, said Bloomberg News.
“Years of underinvestment and ongoing mine disruptions have left the market with little buffer, while tariff policy uncertainty and stockpiling are intensifying the squeeze on available metal,” said Ewa Manthey, commodities strategist at ING.
