Copper Hits Record High as Supply Tightens and AI Demands Grow

Copper futures reached a record high of $14,533 per ton on the London Metal Exchange recently. The price has climbed significantly since January and shows a gain of nearly 17 percent over the past year. Traders are closely watching the market to see if a price correction is coming soon.

The main driver behind the surge is the expectation that President Donald Trump might expand United States tariffs to refined copper imports. This anticipation caused traders to ship massive amounts of copper into the US, creating a supply shortage across the rest of the global market. At the same time, the boom in artificial intelligence data centers and chip manufacturing has increased demand for the metal. Renewable energy projects and aging mines are adding extra pressure to the global supply chain.

Despite the strong momentum, some market risks remain. The Federal Reserve might raise interest rates by 25 basis points following a weak jobs report, which could push investors toward traditional safe havens like gold and cause copper prices to drop. Furthermore, if the expected US tariffs do not happen, the commodity could see a swift price correction. Traders should prepare for fresh market volatility in the days ahead.