Copper surged above $13,000 per ton as a strike at Chile’s Mantoverde mine and fears of renewed US tariffs tightened supply perceptions. Growing COMEX inventories and past tariff-driven premiums are reviving concerns about copper scarcity outside the US market, Commerzbank's commodity analyst Barbara Lambrecht notes.

US tariff uncertainty tightens global Copper supply

"Copper also jumped sharply by more than 4% to exceed the $13,000 per ton mark for the first time. Two factors are pushing the price even higher. Firstly, there is a strike at the Mantoverde mine in Chile which, according to the union, could last more than two months thanks to high financial reserves. The mine accounts for less than 0.5% of the global supply and the operator hopes to maintain 30% of normal production with non-striking workers."

"However, the strike is seen as evidence that high prices are exacerbating tensions between mining companies and workers, with the possibility of further strikes elsewhere. Secondly, concerns are growing about possible US tariffs on refined Copper. Having initially been exempted last year, the US government is due to make another decision by the end of June."

"Until last summer, fears of tariffs had led to significant premiums being paid on the New York COMEX compared to the LME. In December, premiums rose significantly again. Although these have fallen back in recent days, Copper stocks on the COMEX are climbing ever higher, fuelling concerns that the material will become scarce elsewhere."