(Sept 3): Copper has the scope to rise to a record early next year as US tariff concerns combine with supply challenges at mines and resilient global demand, according to ANZ Group Holdings Ltd.

The industrial metal stands to benefit from an influx of supplies into the US on speculation the Trump administration may introduce a levy, analysts Soni Kumari and Daniel Hynes said in a note. Investment in electric vehicles and new-energy infrastructure will also support consumption, just as supplies face pressure in South America, they said.

Copper — used in pipes and wiring — has risen 15% this year and is near a record high set in late January. Speculation about a potential US tariff on refined imports has drawn record volumes into US-based warehouses, curtailing supplies available in the London Metal Exchange network.

“Tariff-driven metal flows into the US continue to distort the global copper balance,” the analysts said, noting that American prices were above those on the LME, opening up arbitrage flows. “Most inventories are sitting in the US, tightening the market outside.”

Three-month copper futures traded near US$14,245 (RM57,615) a tonne on the LME on Thursday. Prices have the scope to rise towards US$14,500 by year-end and have potential to reach US$15,000 in early 2027, ANZ said.

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