Published May 12, 2026
Here is a longer-term chart:
The rally is accelerating as speculative buyers and industrial hedgers scramble to secure physical supply.
- COMEX Copper: Hit a new intraday all-time high of $6.58 per pound this morning, currently settling around $6.53/lb (+1.8%).
- LME Copper: Trading near $13,950 per metric ton, holding the gains from yesterday’s record settlement of $13,943.
- Performance: The metal is now up approximately 15% year-to-date, with nearly 8% of those gains occurring since the intensification of the conflict in the Middle East.
Why the Rally Won’t Quit
Beyond the “Grasberg” supply shock from Freeport Indonesia, two new catalysts are dominating the tape today:
- The “Strait of Hormuz” Premium: Analysts are now labeling copper a “geopolitical defensive asset.” With shipping routes through the Strait of Hormuz effectively suspended, the global refining market is facing a massive “sulphuric acid” shortage. Since sulphuric acid is critical for copper leaching, this is creating a secondary supply squeeze on top of the mining delays.
- Tariff Front-Running: There is growing evidence that U.S. buyers are “front-running” anticipated 25% refined copper tariffs expected to be announced by the White House before June. This is causing a massive dislocation between US and London prices as stocks are hoarded on North American soil.
- AI Data Center Demand: New reports suggest that global AI power infrastructure requirements for 2026 are 20% higher than initial projections, further tightening the structural deficit.