Copper price sets fresh US record as tariff-driven hoarding meets shrinking supply
Deal to reopen the Strait of Hormuz may be days away, but the five-month closure and China's export ban have already cut deep into the sulphuric acid supplies that a big chunk of world copper output depends on.
Copper prices surged to a new all-time high in the United States on Wednesday, driven by import tariff speculation and dwindling global supplies. The Comex contract reached $6.7045 per pound ($14,781 per tonne), surpassing the previous peak of $6.69 in mid-May. New York trades were $640 per tonne above London, the widest premium since January.
Despite the tariff deadline passed without action, traders seized the opportunity, with over 200,000 tonnes of copper arriving at U.S. ports in July, the largest monthly inflow in the past seven years. Supply constraints loomed, as the closure of the Strait of Hormuz hindered seaborne sulfur shipments from the Gulf, affecting key processes like the SX-EW copper production.
Chilean copper producer Codelco temporarily halted an expansion at El Teniente, a major underground mine, due to a seismic phenomenon. Copper equities rallied as companies such as Glencore, Anglo American, and Antofagasta reported strong earnings, driven by rising copper prices and war-related trading profits. Analysts forecast continued price growth due to structural supply deficits.
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