Copper prices hit above $6 amid tariffs, supply concerns and green transition
Copper hit a record high of $6.06 per pound on international markets amid supply concerns, Anadolu reported.
Last year's rally in prices carried over into this year. The Fed interest rate cuts, declining real interest rates and reduced demand for the dollar have fueled the rise in prices.
Copper was particularly affected last year by US President Donald Trump's policies and supply concerns.
After Trump announced in July that he would impose a 50% tariff on copper imports, the price rose above $5.90.
The accident at the Grasberg mine in Indonesia, owned by US-based Freeport McMoran, also negatively affected copper supply, causing prices to rise.
Copper, like silver, is a product in demand in the green energy sector. Improved global growth expectations and increased AI investments are supporting copper prices.
Continued global infrastructure investments are positively affecting base metals, with copper demand particularly standing out. The continued heavy flow of metals to the US has increased concerns about supply shortages in other regions.
Increased investment in electric vehicles and the renewal of global electricity grids are ensuring that copper demand remains strong.
Demand from the US, Europe and India is expected to continue, despite concerns about the Chinese economy.
Copper is also used in the defense industry.
The price of copper per pound rose to $6.06 in international markets in the new year, testing its all-time high amid supply concerns.
Concerns that the US may increase customs tariffs are triggering the rise in prices.
There are also concerns that more copper will be shipped to the US due to tariff concerns. This is causing supply problems in Asia and Europe.
Earlier, it was reported that silver prices on COMEX have moved into correction following a sharp surge and the setting of a new all-time high. As of December 30, silver remained above $74 per troy ounce.
