Copper miners soar as prices hit record amid shortage concerns
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The news: Copper miners were among the biggest gainers on the ASX 200 in morning trading as a key one-day copper price spread on the London Metal Exchange hit a four-year high amid supply woes ahead of a potential US copper tariff.
The numbers: At 10:42am AEST, Capstone Copper shares had risen 6.7% to $9.46 and IGO shares had also lifted 4.4% to $4.19.
Large diversified miners also gained — BHP was up 3.3% to $37.30, Rio Tinto lifted 3.1% to $107.46 and South32 increased 3.1% to $2.99.
The context: US President Donald Trump ordered an investigation into imported copper prices in February as a precursor to potentially imposing tariffs on the commodity.
Traders have since imported record volumes of copper into the US as they hope to get ahead of any tariffs, affecting the supply available to the rest of the world.
Goldman Sachs analysts warn that shortages could get worse prior to any tariffs, with a decision expected by September.
Bloomberg reported that the premium on copper contracts due in one day compared to those expiring a day later hit its highest level on the London Metal Exchange since a short squeeze in 2021 on Thursday.
The benchmark three-month contract price for copper also settled 1.9% higher.
