Key Facts
On August 5, LME copper touched USD 14,125/t intraday, second only to the USD 14,196.5/t high set on May 13, while COMEX copper futures strengthened in tandem, briefly approaching record highs. On the news front, Chile's state-owned copper company Codelco has suspended the expansion project at the Andes Norte section of the El Teniente mine over earthquake risk concerns. El Teniente is the world's largest underground copper mine; a collapse a year ago killed six workers.
Policy and Trade
Separately, the US has launched a Section 232 national security investigation into copper products under the Trade Expansion Act of 1962, already imposing 50% tariffs on copper semis and planning to phase in tariffs on refined copper starting in 2027. The market expects a presidential determination between September and year-end. CSC Futures noted that over the past 18 months the US has built at least 1.2 million tonnes of strategic stockpiles in advance through tariff expectations; under the tariff standoff, copper prices are more likely to rise than fall within the year.