Copper has pushed above $US12,000 a tonne for the first time, extending a strong rally as a series of mine disruptions tightens global supply.
Benchmark prices on the London Metal Exchange rose as much as 2% on Tuesday to $US12,159.50 a tonne. Copper is now up more than 35% for the year and is on course for its biggest annual gain since 2009.
US tariff uncertainty pushes copper higher
US tariff uncertainty has also helped fuel the move. Copper has been accumulating in US warehouses as buyers bring forward shipments ahead of any potential import levies, creating conditions for an arbitrage trade.
“The US is still in stock-building mode, and I would expect that to continue until we get further information from the US government,” said Helen Amos, a commodities analyst at BMO Capital Markets.
Supply risks that have long hovered over the market have moved centre-stage in recent months. A fatal accident at the world’s second-largest copper mine in Indonesia, an underground flood in the Democratic Republic of Congo, and a deadly rock blast at a mine in Chile have combined to curb production.
Copper later eased from the session peak but still ended higher, up 1.1% to settle at $US12,060.50 a tonne on the LME.