Commodities
Home›Commodities›Energy›Copper rises on tariff and Iran talks, but surpluses l…
Copper rises on tariff and Iran talks, but surpluses loom
Copper was last at $6.27 a pound, up 2.6% in New York, while Macquarie projects surpluses and points to elevated exchange inventories.
Copper prices climbed in New York, trading at $6.27 a pound, about $13,800 a tonne, and up 2.6% by lunchtime, helped by a drop in oil prices after Donald Trump said Iran is back at the negotiating table and by ongoing tariff threats in the US, Mining.com reported.
The Commerce Department said it plans to create a process to expand tariffs of up to 50% to a wider range of downstream copper products by the end of the 2026 fiscal year, adding to investor focus on potential US trade measures. Macquarie Strategy said the market is stuck between bullish sentiment and weakening physical fundamentals.
In its commodities compendium, Macquarie argued the world is not short of copper and that surpluses are expected over the next few years, making it unlikely that shortages will quickly emerge. The bank cited visible stocks rising by more than 870,000 tonnes since the start of 2025, including 444,000 tonnes added in 2025 and 429,000 tonnes so far in 2026, with LME inventories at eight-year highs.
Macquarie also pointed to inventory conditions and supply disruptions, noting an estimated 550,000 tonnes sitting off-exchange in the US and that visible stocks have been supported by positioning, short covering, and tariff-related trade flows rather than physical tightness. It cited guidance from 17 large miners cut by 199,000 tonnes to 13.8 million tonnes, with disruptions tied to Kamoa-Kakula and Grasberg as recovery and ramp-up schedules were pushed back.
Latest closeCopper $6.130 ▼0.7%