Copper prices in the US jumped to multi-month highs on Friday at to $11,540 per ton amid fears that import tariffs could soon extend to refined copper, adding to already tight global supply conditions.
The metal’s benchmark price on COMEX edged closer to record levels as traders rushed to secure shipments from London Metal Exchange (LME) warehouses, sparking concerns that inventories could be further depleted.
“US copper prices are closing in on record-high territory as a recent jump in requests to withdraw copper from LME warehouses exacerbated fear over a global supply shortage,” said Adam Turnquist, chief technical strategist at LPL Financial. “The growing urgency to move LME copper to the US stems from the metal being added to the US list of critical minerals earlier this year.”
Copper has already risen more than 30% this year, driven by major mine outages and strong demand from power grids, data centers, and the electric vehicle sector. While the White House imposed a 50% tariff on semifinished and derivative copper products in August, refined copper was initially excluded. Officials are reviewing the refined copper market and have suggested a phased universal import duty could take effect by January 2027.
Market participants say the potential for new tariffs, coupled with production disruptions and rising consumption, has intensified upward pressure on prices. Technical indicators suggest COMEX copper has broken out from a short-term consolidation range, signaling potential gains toward prior record levels.
Analysts warn that rising copper prices could further stoke inflationary pressures and impact sectors heavily reliant on the metal, including construction, equipment manufacturing, and electronics.
Citi expects copper could climb to $12,000 per ton by the second quarter of 2026, despite near-term demand growth remaining subdued. The bank cited modest global consumption increases outside China and flat demand within China itself, but noted that easier US fiscal policy and looser global monetary conditions could lift consumption in 2026.
Major US-listed miners showed modest gains on Friday amid the rally. Freeport-McMoRan rose 1.8%, Southern Copper gained 1%, and BHP’s US-listed shares were up 0.2%.
A look at developers
While Friday's share price gains have yet to make its way down the value chain, junior miners focused on copper development could still see longer-term benefits from the rally:
- Gunnison Copper Corp (TSX:GCU, OTCQB:GCUMF) is developing the Gunnison copper project, an open-pit mine in Arizona with heap leach and SX/EW processing to produce finished copper cathode. The Johnson Camp Mine, under construction and funded by Nuton LLC (a Rio Tinto venture), has begun producing copper using Nuton’s bioleaching technology, with a target of 25 million lbs of finished copper annually.
- Power Metallic Mines Inc (TSX-V:PNPN, OTCQB:PNPNF) recently extended high-grade mineralization at its Nisk Project in Ontario through a summer drilling program. Assays included 4.4 meters at 14.34% copper equivalent recovery within 20.4 meters at 3.58% CuEqRec, setting the stage for further exploration in 2026.
- Northstar Gold Corp. (CSE:NSG) signed a Master Project Agreement with DIGITAL and Novamera Inc to advance its Cam Copper Surgical Mining Project in Ontario. The project uses precision “Surgical Mining” technology to extract copper-rich material with minimal environmental impact, including no blasting and a closed-loop water system.
- Midnight Sun Mining Corp (TSX-V:MMA, OTCQB:MDNGF) continues exploration in the Zambian-Congo copperbelt, adjacent to First Quantum Minerals’ Kansanshi copper/gold mine, targeting world-class deposits in one of the world’s most prolific copper regions.
- C3 Metals Inc (TSX-V:CCCM, OTC:CUAUF) is advancing exploration at its Bellas Gate property in Jamaica under a partnership with Freeport-McMoRan Exploration. Earlier drilling confirmed copper-gold mineralization across multiple zones, highlighting the potential for sizable discoveries in the region.