Copper Surges to $11,581.50 Amid Tight Supply and Tariff Risks
Copper prices hit $11,581.50 a TON as Citi forecasts an average of $13,000 for Q2, citing supply constraints and regional imbalances. Analysts note metal is being diverted to U.S. ports ahead of potential tariffs, exacerbating shortages elsewhere.
Mercuria Energy Group’s $500 million copper withdrawal from LME warehouses—the largest cancellation in a decade—signals tightening physical markets. Citi’s Max Layton maintains a bullish outlook through 2026, citing 'multiple catalysts' including macro tailwinds.
Contrasting views emerge as Macquarie warns prices above $11,000 may be unsustainable, pointing to swelling exchange inventories. COMEX warehouses now hold nearly 430,000 tons, the highest since 2018, though Goldman Sachs sees no structural shortage until 2029.
