Copper hits record high as global supply concerns intensify

Copper surged to a record high on the London Metal Exchange (LME) on Monday as mounting fears of a looming supply crunch rattled global markets, Bloomberg reported.

Prices climbed as much as 0.9 percent to US$11,294.50 per ton on the LME, while Comex futures in the US rose as much as 1.6 percent. A rush to ship copper into the United States ahead of potential import tariffs is expected to worsen shortages in other regions, as mining output continues to lag behind robust demand.

The latest rally follows last week’s major copper conference in Shanghai, where industry players flagged growing supply stress after a year marked by unplanned mine outages. Smelters are preparing for tough negotiations with miners over 2026 ore supply, annual premiums have spiked, and major trader Mercuria Energy Group warned that metal shortages are likely next year.

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Copper has gained nearly 30 percent on the LME this year, fueled by long-term bullish sentiment surrounding its critical role in electrification and the global energy transition. Prices on Comex hit their highest level since July 30, shortly before a sharp correction triggered by US President Donald Trump’s decision to delay tariff announcements until 2026.

Traders are now rushing to bring metal into the US market, where prices remain above those in London on expectations that new tariffs will be imposed next year. Mercuria’s head of metals, Kostas Bintas, said the US could receive more than 500,000 tons of copper in the first quarter of 2026.

As of 10:27 a.m. in Shanghai, copper was up 0.4 percent at US$11,228.50 per ton on the LME after a 2.3 percent jump on Friday. Comex prices edged up to US$5.31551 per pound. Other LME metals also advanced, with tin rising 1.4 percent and aluminum up 0.3 percent.

Editing by Reiner Simanjuntak