Copper Surpasses $12,000 per Ton... Record High on Tariff and Supply Shortage Concerns

Citi Raises Early Next Year Forecast to $13,000-$15,000 Per Ton
Trump Administration May Impose Tariffs Next Year
Rush to Secure Copper Before Tariffs
Production Drops at World's Largest Mines

The price of copper has reached an all-time high. A combination of tariffs imposed by the Trump administration and concerns over supply shortages pushed copper past the psychological resistance level of $12,000 per ton (approximately 17.79 million won).

According to the Financial Times (FT) on the 23rd (local time), copper prices on the London Metal Exchange (LME) recorded $12,160 per ton. Since October, copper prices have repeatedly set new record highs.

The recent surge in copper prices is largely due to the impact of tariffs. The possibility that U.S. President Donald Trump will impose additional import tariffs on copper next year has fueled the price increase. As a result, there has been a rush to secure copper before the tariffs are implemented, which has driven prices even higher.

Concerns over supply shortages are also negatively affecting copper prices. The production volume of Codelco, Chile's state-owned mining company and the world's largest copper producer, has dropped to its lowest level in decades. In addition, an accident at a major mine in October led to a halt in mining and some processing operations.

Analysts at Jefferies investment bank stated, "Even if the global GDP growth rate is only 2%, we expect a significant supply shortage in the copper market over the next year."

Investment in artificial intelligence (AI)-related infrastructure is also cited as a factor driving up copper prices. According to Goldman Sachs, about 60% of the increase in copper demand through 2030 is expected to come from global power infrastructure.

Citi recently raised its copper price forecast for early next year to between $13,000 and $15,000 per ton. The analysis is that continued strong prices are likely if demand driven by AI infrastructure expansion coincides with limited supply conditions.

Meanwhile, copper prices have risen by about 37% this year alone, marking the largest annual increase since 2009.