Copper prices surged to a fresh record on the London Metal Exchange, as mounting concerns over mine supply and the prospect of potential U.S. tariffs sent buyers scrambling for the metal.

Benchmark three-month copper futures rose 0.9% to $14,510 a metric ton after hitting an all-time high of $14,533 a ton earlier in the session--surpassing the previous record set in January. Prices have gained 16% so far this year.

The rally reflects a longer-term bet on robust copper demand, driven by investment in power grids, artificial intelligence, data centers, electric vehicles and other energy infrastructure. But tighter near-term supply has become the more immediate catalyst.

Global copper-mine output fell 1.1% in the first half of 2026, according to preliminary data released in August by the International Copper Study Group, an intergovernmental body representing copper-producing and -consuming countries. Concentrate production, the main feedstock for smelters, dropped 2.6%.

Production declines in some of the world's biggest mining countries were particularly sharp, including in Chile, Indonesia and the Democratic Republic of Congo, despite increased production from projects ramping up in countries such as Peru and Mongolia.

Still, the refined copper market remains in surplus. Global refined production rose 2.4% in the first half, led by China and the DRC, while consumption increased. That left a preliminary global surplus of about 131,000 tons, compared with 114,000 tons a year earlier, the International Copper Study Group said.

Meanwhile, concerns that President Trump could place new import taxes on refined copper have drawn more copper toward the U.S., tightening supply elsewhere and pushing global prices higher.