Why is copper price rising now?

Prices jumped almost 40% year to date on supply fears into 2026, strong grid and data center demand, and metal being stored in the U.S. ahead of possible tariffs. Tight inventories and holiday liquidity add fuel. If policy risk eases, a quick pullback can follow as stocks re-enter global markets.

What is the 2026 copper deficit?

It is a widely discussed shortfall where mined and refined supply may lag demand due to delayed projects and lower ore grades. If it persists, LME copper price can stay elevated. If new supply, scrap flows, or demand deferral appear, the deficit could shrink and cool prices.

How could US tariff risk affect prices?

If tariffs hit, U.S. inventories may become less mobile, tightening supply elsewhere and widening regional price gaps. That could keep the copper price high outside America. If tariffs are lighter than feared, a release of “trapped” metal could ease tightness and pressure futures lower.

What should Indian investors watch day to day?

Track LME spreads, on-warrant stocks, and Asian physical premiums. Monitor U.S. tariff headlines, China import data, and outage reports. For exposure, review hedge ratios and USD/INR sensitivity. Be ready to scale risk down if spreads invert sharply or if inventories start to rebuild across major warehouses.

Global Market Insights

December 26: Copper Soars to Records on 2026 Deficit, Tariff Hoarding

ByHuzaifa Zahoor December 26, 2025December 26, 2025

Copper price surged to fresh records near $12,000 per ton on December 26, up almost 40% year to date, as traders brace for a potential 2026 copper deficit and rush metal into the U.S. on tariff fears. For Indian investors, this move can lift input costs in wiring, EVs, and power projects, and add INR volatility. We explain what is driving LME copper price strength, how tariff hoarding can distort supply, and what scenarios could shape prices into 2026.