Copper prices rally on supply concerns

(Sharecast News) - Copper prices sparked on Tuesday, as supply disruptions and tariff jitters weighed heavily.

The metal - which only surpassed $12,000 per tonne for the first time last month -m put on 3% at $13,370 in early trading in London. In the US, it breached $6 a pound on Comex, before easing back to $5.91.

Copper has been on a sharply upward trajectory since October, driven in large part by concerns about potential shortages. Demand remains strong, but a number of the world's biggest mines are becoming less productive as they age.

A strike at the Mantoverde copper mine in Chile also got under way last week after labour talks broke down, further adding to supply concerns. Chile is the world's largest copper producer.

Trade policy is further playing a part, with traders concerned US President Donald Trump could yet impose import tariffs.

SP Angel noted: "Major supply disruptions have pushed 2026 into an expected deficit of more than 300,000 tonnes, having been in surplus in 2025.

"Adding to mine-based supply tightness is a major move of inventory into the US, over sustained tariff concerns."

However, the broker added: "Copper may be vulnerable to a pull-back should these tariff concerns dissipate and metal flows back into Asia from the US."

Matt Britzman, senior equity analyst at Hargreaves Lansdown, said: "Demand remains solid, with copper right at the heart of power-grid upgrades, renewable energy build-outs and the surge in data centre construction.

"It's a backdrop that plays neatly into the hands of the big miners, many of whom have been pivoting hard toward copper in recent years and now look well positioned to benefit from prolonged higher prices."