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Copper prices continued their ascent to unprecedented highs on Tuesday, propelled by acute near-term supply constraints, mounting concerns over prospective U.S. tariffs on refined copper imports, and robust demand projections tied to AI data centers, power grids, and renewable energy infrastructure.

The red metal advanced for the fourth consecutive trading session on the London Metal Exchange (LME), setting a fresh record at approximately $14,617 per metric ton. Meanwhile, three-month copper benchmark contracts rose to roughly $14,581 per ton during Tuesday’s session.

With these gains, copper has rallied nearly 17% year-to-date, reflecting escalating structural anxieties across commodity markets regarding the global mining sector's ability to keep pace with future demand.

U.S. Tariff Risks Reshaping Global Flows

A primary catalyst driving recent market momentum has been the prospect of the United States levying tariffs on refined copper imports.

Anticipation of these trade barriers has diverted substantial tonnages of copper directly toward the U.S. domestic market to capture anticipated price premiums, triggering aggressive inventory drawdowns from LME-registered warehouses.

This diversion has squeezed available inventories across ex-U.S. delivery points, precipitating a localized supply squeeze in the physical market. The tightening is acutely evident in the futures curve, where the market has shifted into deep "backwardation"—a structural condition where spot prices trade at a substantial premium over forward-dated contracts, typically signaling immediate physical supply scarcity.