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What's Driving
Metal Prices

Factors creating the on-going surge in copper prices and base metal prices.

The U.S. imposed a 50% Section 232 tariff on the copper content of semi-finished and derivative copper products, effective August 1, 2025. These tariffs aim to bolster domestic production but create complexities for businesses in pricing, sourcing, and compliance, affecting global copper markets. 

In addition copper costs are soaring due to massive demand from the energy transition (EVs, renewables, grid) and AI data centers colliding with slow mine supply growth, production disruptions (labor, technical issues), aging mines, and government policies like tariffs, creating a structural supply deficit. 

Tin prices jumped to a record level due to a severe, ongoing global supply squeeze from mine disruptions (DRC, Myanmar, Indonesia) and increasing demand driven by its critical role in electronics (solder), green energy tech, and packaging, creating a significant market deficit and attracting speculative investment. Supply chain issues, including export permit delays and political instability in key producing regions, combined with growing recognition of tin's necessity for the energy transition, fueled a rally to multi-year highs in late 2025 and early 2026. 

Nickel prices are rising due to anticipated supply cuts from major producer Indonesia, tighter quotas, increased demand from stainless steel and EV battery sectors (despite some LFP shifts), speculative buying, and broader market strength in metals, with investors reacting to policy signals and potential disruptions.

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