Copper Has Officially Gone Full Superhero Mode
A tightening supply chain, tariff anxiety, and shrinking inventories push copper into uncharted territory.
Editorial Team (ET)December 4, 2025
Copper has smashed through another all time high, climbing above eleven thousand four hundred dollars a ton, as traders brace for what many now see as an unavoidable supply squeeze. The jump came after new data from the London Metal Exchange revealed a sudden wave of orders to withdraw metal from Asian warehouses, a clear signal that buyers are scrambling to secure physical inventories before the market tightens even further.
The rally underscores a shift that has been building for months. Copper has risen more than thirty percent this year, yet the surge has accelerated dramatically as the United States edges closer to potential tariffs on primary copper. Even the possibility of a policy announcement has been enough to redirect global shipping routes, drain inventories, and drive a widening price gap between American and international markets.
Tariff Anxiety Reshapes Global Flows
President Donald Trump first floated copper tariffs early in the year, and the market has been on edge ever since. US imports quickly soared to record highs as traders raced to beat any future barriers. When the administration later signaled it might only target value added products for now, the market briefly relaxed. But the White House also left the door open to raw metal tariffs as early as 2027, and the uncertainty has acted like fuel on an already tightening supply chain.
US futures have rallied far faster than London prices, creating a powerful incentive for traders to reroute enormous volumes of metal into American ports. That diversion has pushed global inventories to precarious levels, pressuring producers to raise premiums for buyers in Europe and Asia. Customers outside the United States are now effectively compensating miners for the profit they would otherwise earn by selling into the hot US market.
