FX.co ★ Copper Moves Toward Record High

Copper futures rose to about $6.70 per pound on Tuesday, moving closer to new record highs as expectations of forthcoming US import tariffs on the metal continued to prompt traders to divert shipments into US warehouses, tightening availability in other regions. The sustained premium on copper contracts traded on New York’s Comex has kept arbitrage opportunities open, even though the White House has not yet finalized the proposed duties. This tariff-driven repositioning of trade flows sparked a severe squeeze and marked backwardation on the LME last month, although recent deliveries have helped alleviate some of the most acute supply pressures. At the same time, major copper producers in South America have faced operational disruptions this year, weighing on output and exports. Overall, supply has struggled to keep pace with mounting demand from data centers, renewable energy installations, and power grid expansions.