Copper prices are holding steady near record highs as traders weigh ongoing supply tightness against subdued risk appetite stemming from the US market closure. Prices were little changed at around $14,440 per tonne during the London afternoon session on Monday, sitting less than $100 below the peak hit in January.
Trading activity remained thin with US markets shut for the Labor Day holiday, while investors also balanced fresh US-Iran strikes against prevailing optimism around artificial intelligence demand. Copper has climbed more than 16% so far this year, driven by supply dislocations tied to potential US tariffs that have sent substantial inventory volumes to American warehouses over the past year.
A softer US dollar and expectations of rising copper consumption from data centres and power grids tied to the AI boom have added further macroeconomic tailwinds. Marex senior base metals strategist Alastair Munro said in an emailed note that the firm remains bullish on copper and expects fresh highs in the coming weeks, adding that the metal is rewarding those who buy on dips.
At the time of writing, three-month copper on the London Metal Exchange was up 0.3% at $14,451 per tonne. Other industrial metals were mixed, with aluminium advancing 0.6%, zinc adding 0.7%, and nickel slipping 0.4%.
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