Gold isn’t the only metal smashing through record high prices.
Copper prices in New York hit a record high on Wednesday after Bloomberg reported that President Donald Trump might impose tariffs on copper imports in the coming weeks. Wall Street had expected tariffs on copper to come later this year.
The most actively traded copper futures contract in New York hit $5.374 per pound Wednesday morning before settling at a record $5.24 per pound.
Copper prices have soared 30% this year, largely driven by US buyers trying to stockpile the red metal due to anxiety around potential tariffs. Copper prices have outpaced gold, which has gained 16%, and far outpaced the major US stock indexes this year.
While tariffs on copper have yet to be announced, Trump signed an executive order last month to investigate the national security risks associated with importing copper.
“Copper, a key industrial metal that has yet to be included in Trump’s widening catalogue of tariff-hit products, continues to rally on the assumption that it is just a matter of time,” said Ole Hansen, head of commodity strategy at Saxo Bank, in a recent note.
Copper is not a rare earth mineral nor one of the 50 “critical minerals” designated by the US Geological Survey. However, in 2023, the Department of Energy deemed it a “critical material for energy.” The malleable metal is widely used in construction and manufacturing and has essential purposes for electronics, energy and defense.
The recent price spike in New York copper futures isn’t due to fundamental consumer demand, but rather “major stockpile shifts to the US” due to speculation around tariffs, according to Hansen.
In London, copper prices have also risen, though not to record highs. Since January, copper futures traded in New York have begun to outpace copper futures traded in London, breaking away from their trend of tracking each other. New York copper futures are now trading at a 17% premium, according to Hansen.
“It highlights how tariffs continue to uproot normal market behavior,” he said.
Commodities giant Mercuria estimates that about 500,000 tons of copper are being shipped to the US this month — a significant boost from the standard monthly import of about 70,000 tons, according to Bloomberg.
“Front-running the potential tariff has unleashed a wave of near-term demand for copper housed in the US,” said Adam Turnquist, chief technical strategist at LPL Financial.
“We think shipments to the US will likely be fast tracked,” analysts at Goldman Sachs said in a Wednesday note, adding that imports of copper in April could jump 200,000 tons.
