Copper prices climbed to a new record high in the United States on Wednesday as shipments of the metal continued flowing into the US market ahead of potential import tariffs, while mounting supply constraints added further support to prices.
The September copper contract on COMEX rose to $6.7045 per pound, equivalent to $14,781 per metric ton, surpassing the previous record of $6.69 per pound set in mid-May.
The most actively traded contract later stabilized at $6.6825 per pound during late morning trading, up 0.6% from Tuesday’s close and bringing its gains since the start of the year to around 17%.
On the London Metal Exchange, copper traded at $14,050 per metric ton after breaking above the $14,000 level for the first time in two months, approaching its January record high of $14,500.
The price gap between the two markets also widened, with New York copper trading at a premium of around $640 per metric ton over London. The average premium throughout July exceeded $350 per ton.
Tariff uncertainty drives copper stockpiling
Markets continue to await a decision from the US administration on copper import tariffs after the June 30 deadline set by Commerce Secretary Howard Lutnick for recommendations passed without an official announcement.
The proposal includes phased tariffs starting at 15% in January 2027 and rising to 30% the following year. The administration is also considering expanding the existing 50% tariffs on semi-finished copper products to include raw copper, while adding 14 new product categories, including electrical cables, under Section 232 trade measures.
Those expectations have prompted companies to accelerate imports, with US ports receiving more than 200,000 metric tons of copper in July, the highest monthly total since records began in 2014.
COMEX copper inventories have climbed more than 40% since the beginning of the year to record highs, while total copper stockpiles within the United States, including private port warehouses, are estimated to exceed one million metric tons.
Michael Cuoco, Head of Metals at StoneX Financial, said tariff-related speculation has become the dominant driver of copper prices, outweighing the impact of underlying demand growth.
Global supply pressures persist
The rally has also coincided with growing optimism over the reopening of the Strait of Hormuz, as the United States, Iran, and Oman prepare to implement a temporary 60-day arrangement governing maritime traffic.
President Donald Trump said an agreement could be reached “tomorrow or the day after,” boosting investor confidence, easing inflation concerns, and reducing expectations for additional US interest rate hikes, all of which have supported industrial metals.
Despite that optimism, global supply chains remain under pressure. The disruption of shipping through the Strait of Hormuz has affected roughly half of seaborne sulfur shipments from the Gulf, while China’s export restrictions on sulfur through December have reduced global sulfuric acid supplies by around 25%.
Sulfuric acid is a critical input for solvent extraction and electrowinning (SX-EW), a production method accounting for more than 15% of global copper output.
The Democratic Republic of Congo produces around 1.5 million metric tons of copper annually using SX-EW technology, while Chile produces approximately 1.2 million metric tons. Industry estimates suggest that some mines now hold sulfuric acid inventories sufficient for only 30 to 60 days.
In Chile, state-owned Codelco has suspended the Andes Norte expansion project at its El Teniente mine, the world’s largest underground copper mine, after detecting new seismic activity that could threaten operational safety.
The decision follows last year’s fatal rock collapse that killed six workers, leaving annual production at around 300,000 metric tons, well below pre-accident levels.
Chairman Bernardo Fontaine said there is “no possibility” of reaching the company’s annual production target of 1.7 million metric tons within the next four to five years.
Mining shares advance
The surge in copper prices lifted mining stocks across the sector.
Glencore reported first-half results showing adjusted EBITDA jumped 86% to $10.1 billion, supported by strong trading profits during the conflict and a 15% increase in copper production. The company also confirmed plans for a secondary listing on the Sydney Stock Exchange in October, sending its US-listed shares up about 3%.
Anglo American gained 1.7%, while Antofagasta extended its rally after surging nearly 7% in the previous session.
Shares of BHP rose 2.0%, Rio Tinto advanced 2.3%, Freeport-McMoRan gained 3.3%, First Quantum Minerals climbed 3.2%, Ivanhoe Mines added 2.9%, Southern Copper rose 2.4%, and Teck Resources increased 1.7%.
Copper prices have surged more than 50% over the past 12 months, and research firms including BMI expect the structural supply deficit to persist, supporting higher prices over the coming years.
