Copper Climbs Toward Fresh Record High

Copper futures rose above $6.6 per pound, moving closer to fresh record highs as tightening global supply supported prices. Traders continued to ramp up shipments to the US while drawing down inventories elsewhere ahead of an expected decision by the Trump administration on copper import tariffs. Industry data showed that more than 200,000 tons of copper arrived at US ports in July, marking the largest monthly inflow in over a decade and adding to the substantial stockpiles built up over the past year. Meanwhile, copper inventories across the London Metal Exchange’s warehousing network fell to a five-month low, with traders pointing to increased shipments to China to ease a domestic supply shortage. Copper also remained supported by its strong long-term demand outlook, driven by the global transition to clean energy and the rapid expansion of artificial intelligence data centers.

Copper futures climbed toward $6.6 per pound on Tuesday, reaching their highest level in two months as ongoing supply constraints continued to tighten market conditions. Analysts cited shortages of copper concentrate and scrap copper in top consumer China, driving treatment charges and market spreads higher. Traders also remained cautious over the prospect of new US tariffs on the metal, which has encouraged the diversion of copper shipments into the US. In addition, copper continued to draw support from its favorable long-term demand outlook, fueled by the global shift toward clean energy and the rapid expansion of artificial intelligence data centers. Meanwhile, private data showed China's manufacturing activity slowed to a four-month low in July as output and new orders expanded at a weaker pace, dampening the demand outlook. The Politburo also indicated last week that it would continue relying on existing policy measures instead of rolling out broad-based stimulus.

Copper futures climbed above $6.45 per pound on Friday and were on track to finish the week and the month about 2% and 4% higher, respectively. The gains followed the US Federal Reserve’s decision to leave interest rates unchanged this week, easing concerns over the demand outlook for industrial metals. In top consumer China, the Politburo signaled it would continue relying on existing policy measures rather than introducing broad-based stimulus, emphasizing the need to “fully use” current tools while directing fiscal spending and bond issuance toward boosting demand and improving supply. Meanwhile, copper continued to find support from its strong long-term demand outlook, underpinned by the global transition to clean energy and the rapid expansion of artificial intelligence data centers.