News and Articles

• LME spot copper settled near 13,871 dollars a tonne on 12 May, close to all-time highs
• COMEX copper futures touched a record 6.58 dollars a pound on supply concerns
• Sulphuric acid shortages tied to Iran conflict have cut refined output in Chile and China
• Power grids, renewable energy and AI data centres continue to drive structural demand
• U.S. Commerce Department expected to recommend copper tariffs of at least 25 percent by June

Copper prices on the London Metal Exchange traded close to historic peaks this week, with the benchmark spot contract settling near 13,871 dollars a tonne on 12 May and U.S. futures pushing to a fresh record above 6.58 dollars a pound. Persistent supply concerns, surging Chinese industrial activity and growing structural demand from power infrastructure investment continued to lift the metal, even as global stockpiling related to potential U.S. tariffs added another layer of buying pressure.

Tightness in the sulphuric acid market has emerged as a significant new factor for refined copper supply. Exports of sulphur and sulphuric acid from the Middle East have been largely suspended since the U.S.-Iran conflict began in late February, and the resulting shortage has constrained heap leaching and copper anode production at major refiners. Top producer Chile has been particularly affected, with several large operations forced to cut capacity, while China has suspended exports to retain domestic supply.

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Demand-side dynamics have remained firm despite the broader geopolitical backdrop. Power grid build-out, renewable energy installations and infrastructure spending tied to artificial intelligence data centres have all reinforced expectations of sustained refined copper consumption. The recent rally in AI-related equities has further supported sentiment around long-cycle demand, while Chinese industrial activity has held up better than many analysts expected.

The tariff dimension continues to play a central role in market positioning. The U.S. Department of Commerce is expected to deliver its recommendation on copper tariffs to the White House by June 2026 or earlier, with at least a 25 percent levy on refined imports widely anticipated. Market participants have responded by accelerating shipments into the United States to build inventory before any duty takes effect, drawing material out of LME warehouses and into COMEX stockpiles.

For procurement teams across wire and cable manufacturing, transformer production, electric vehicle assembly, plumbing and construction, the price action has direct implications for bid validity, hedging strategy and long-term contract structures. Buyers exposed to copper indexation are increasingly being advised to consider lengthening fixed-price windows where commercially possible and to review pass-through clauses for the second half of 2026.