By Martin Baccardax
Global copper prices hit an all-time high Tuesday, extending a run for both the industrial metal and its peers, as investors scrambled to secure supplies amid a surge in expected demand and uncertainty tied to tariffs and geopolitical risks.
Copper prices have powered more than 20% higher over the past two months, topping $13,000 a ton on the London Metal Exchange for the first time earlier this week, as supply disruptions increased the value of the key industrial metal and amid the threat of new levies from the Trump administration later this year.
President Donald Trump, according to reports, has been mulling tariffs of around 15% on all copper imports in 2027, with the levy increasing to 30% in 2028, just as demand tied to data-center construction, electric-vehicle production, and power grid projects accelerates. That has led to a surge in U.S.-based copper stockpiles as investors import the metal to avoid tariff charges and a resultant depletion of supplies in markets around the world.
U.S. stockpiles in warehouses tracked by Comex, the main domestic trading hub, have risen more than fourfold since April. They were at 453,450 metric tons as of Jan. 2.
"Until there's clarity on the tariff front, tariff risk will keep ex-U.S. supply tight and global prices elevated," said Warren Patterson, head of commodities strategy at ING. "The downside risk to copper is a reversal of flows to the U.S. if the refined metal is again exempt from tariffs, which could push inventory into global markets."
"Meanwhile, the start of a strike at the Mantoverde mine in Chile has added to concerns about copper supply," he added. "Low inventories across major exchanges leave little room to absorb further supply shocks."
Copper futures contracts for January delivery, the global pricing benchmark, traded 3.1% higher in London at $13,387.50 a ton, the highest on record, earlier in the session. It was marked at $13,272 a ton shortly after the stock market opened in New York.
Shares of copper miner Freeport-McMoRan rose 3.6% to $56.37 in early trading.
Southern Copper, the biggest U.S.-listed copper miner by market value, rose 2.8% to change hands at $158.78 each. The American depositary receipts of BHP Group, which operates the world's biggest copper mine in Chile, added 1.9%.
Capstone Copper, which owns the Mantoverde mine in Chile, rose 0.4% in after-hours trading Monday, a move that extended the stock's six-month gain to around 73%.
Precious metals prices also moved higher Tuesday, with gold rising 0.11% to $4453.10 an ounce and silver rising 1.75% to $77.86 an ounce.
The weekend arrest and extradition of former Venezuelan leader Nicolás Maduro, as well as Trump's vow to "run" the nation and the world's largest proven oil reserves, has raised the prospect of further U.S. military adventures in other parts of the world and stoked demand for safe-haven assets.
Bloomberg's Precious Metals subindex has risen more than 13% over the past month, and has gained around 5% since the start of the year.
"Geopolitical tensions have added to existing concerns about currency debasement, the sustainability of fiscal debt creation, a weaker dollar and lower funding costs," strategists at Saxo Bank said Tuesday."Silver has gained around 11% while gold trades up 3% with both trading near their December record highs."
Write to Martin Baccardax at martin.baccardax@barrons.com
This content was created by Barron's, which is operated by Dow Jones & Co. Barron's is published independently from Dow Jones Newswires and The Wall Street Journal.
(END) Dow Jones Newswires
January 06, 2026 09:58 ET (14:58 GMT)
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