Copper prices hit record high on London Metal Exchange amid supply concerns and US tariff fears

Copper prices on the London Metal Exchange hit consecutive record highs, reaching $14,689 a metric ton on September 8, 2026. The rally is driven by a global inventory imbalance as American buyers scramble to stockpile refined copper ahead of anticipated U.S. tariffs in 2027. This has caused U.S. COMEX inventories to swell to a record 695,624 metric tons, while LME and Shanghai stockpiles plunge to multi-month lows amid ongoing mine supply disruptions in Chile.

LME copper record price

• ▪Benchmark three-month copper futures on the London Metal Exchange extended their rally on September 8, 2026, rising 1.2% to reach a new record peak of $14,689 a metric ton.
• ▪London Metal Exchange copper prices have gained between 16% and 18% since the start of 2026.
• ▪Benchmark three-month copper futures on the London Metal Exchange rose to an all-time high of $14,533 a metric ton on September 7, 2026, before closing at $14,510 a metric ton.

US tariff anticipation

• ▪The global copper market widely expects the United States to expand tariffs to imports of refined copper starting in 2027.
• ▪Elevated premiums on New York Commodity Exchange futures over London Metal Exchange contracts have created a lucrative arbitrage window that continues to drive physical copper shipments to the United States.

Stockpiling before restrictions

• ▪Anticipation of potential United States tariffs has prompted American buyers to stockpile refined copper before restrictions take effect, triggering a transpacific and transatlantic scramble for the metal.
• ▪The most-traded copper contract on the Shanghai Futures Exchange rose as much as 1.5% to 110,890 yuan on September 8, 2026, marking its highest price level since January 30, 2026.

Global inventory divergence

• ▪Copper inventories on New York's Commodity Exchange swelled to a record 766,795 short tons, or 695,624 metric tons, as of September 4, 2026.
• ▪Copper inventories in London Metal Exchange-registered warehouses have fallen by nearly 40% since late May 2026, reaching a near five-month low.
• ▪Copper inventories in Shanghai Futures Exchange warehouses fell to approximately 63,000 tons by early September 2026, down 85% from a mid-March peak and marking the lowest level since January 2024.

Mine supply disruptions

• ▪A re-escalation of geopolitical tensions in the Middle East has reignited concerns over copper production costs and the availability of acid.
• ▪Global copper mine supply has been constrained by recent storms in Chile and downward revisions to production guidance from mining companies.

Long-term demand drivers

• ▪The global energy transition and the rapid buildout of artificial intelligence data centers are driving long-term demand growth for copper.
• ▪Macquarie analyst Alice Fox stated that falling copper inventories outside the United States are being amplified by supply concerns and a continuing bullish narrative about data center demand.