Copper futures reached an all-time high on the New York Comex exchange due to concerns about potential import tariffs on the metal and reports of disrupted shipments from Chile, a major producer. The price of Comex copper rose to $5.2255 per pound, breaking the previous record set in May. This increase followed news that Glencore Plc had temporarily halted copper shipments from its Altonorte smelter.

The surge in copper prices has led to a significant gap between US prices and the global benchmark set on the London Metal Exchange. This discrepancy began in January when US copper futures started to exceed LME prices and widened after the US Commerce Department initiated an investigation into possible tariffs on copper for national security reasons.

Market experts believe that uncertainties surrounding tariffs will likely keep the price gap between Comex and LME elevated. Traders are incentivized to shift copper into the US ahead of any potential tariffs, with estimates suggesting a substantial amount of copper is being redirected to the US market.

While traders stand to profit from these developments, US manufacturers are anticipating increased costs should the expected 25% import levy be imposed. The potential shortage in the global copper market could further drive prices up, with projections suggesting LME prices could exceed $12,000 per metric ton as the supply tightens.