Copper prices hit yet another record on supply and tariff fears

[Ben Graham]

Copper prices surged to a fresh record on Tuesday as supply disruptions and US trade uncertainty continues to fuell a sharp early-year rally across base metals.

Benchmark three-month copper on the London Metal Exchange rose 1.8% to $13,225 a tonne in official open outcry trading, after earlier jumping as much as 3.1% to an all-time high of $13,387.50. The red metal has gained about 6.6% so far in 2026, having crossed $13,000 for the first time on Monday following a 42% surge last year.

Nickel also climbed, reaching a near 15-month high above $18,000 a tonne, supported by Indonesia’s curbs on mine output.

Copper’s momentum has been building since late 2025, when prices posted their largest annual dollar increase in at least a decade, Albert Mackenzie, copper analyst at Benchmark Minerals says. Much of the move came in December, when copper jumped about 14%, quickly pushing past $12,000 and then S$13,000 in a matter of weeks.

Click on chart for live prices.

Supply concerns have been a key driver, Mackenzie notes, alongside expectations that artificial intelligence (AI) and the energy transition will lift long-term demand. 

A strike at Capstone Copper’s (TSX: CS) (ASX: CSC) Mantoverde copper-gold mine in northern Chile has renewed fears of disruptions, while Chinese producer Tongling Nonferrous has reported delays to the second phase of its Mirador mine in conflict-ridden Ecuador.

Market participants also point to US rhetoric around potential copper tariffs, which has drawn material into the country and disrupted global flows, adding to price pressure.

Still, the speed of the rally is prompting some traders to question whether current levels are justified, Mackenzie says. As prices rise, debate is growing over whether sentiment and speculative inflows are beginning to outpace underlying fundamentals, even as supply risks and demand trends remain broadly supportive.