Copper jumps above $10,000 on US tariff threat
The price of copper reached a five-month high above $10,000 a tonne Thursday as US companies stock up on the metal targeted by US President Donald Trump's tariffs.
Copper -- a vital component for energy storage, electric vehicles, solar panels and wind turbines -- reached $10,046.50, the highest level since October.
The metal hit a record-high of $11,104.50 last year amid strong demand and tight supplies.
"Copper neared a record on tariff worries" said Neil Wilson, an analyst at the investment website TipRanks.com.
Trump last month ordered an investigation into possible levies on US copper imports, with officials citing a need to rebuild domestic production and safeguard national security.
The imposition of tariffs or other barriers on copper could fuel trade tensions with Chile, the biggest US supplier, accounting for about 35 percent of imports, as well as Canada.
The world's biggest economy has been increasingly dependent on copper imports to meet domestic consumption needs.
The metal is used in military hardware like aircraft but there is also growing demand linked to the boom in artificial intelligence and data centres.
While the United States sits on ample copper reserves, it lacks smelting and refining capacity, the White House has said.
Tariffs on copper imports risk "straining the already limited capacity of domestic smelters", said Alan Bush, an economist at ADM Investor Services.
"The US currently imports nearly half of its copper supply, relying on only two major smelters for domestic production," he said.
"While reports suggest these tariffs may be implemented later this year, the recent increase in (other) base metal tariffs on Canada has increased concerns that copper tariffs could be enacted sooner than expected," he added.
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