Australian mining stocks are driving gains on the ASX following a surge in copper prices to a new record high. The rally comes as increased orders from London Metal Exchange (LME) warehouses exacerbate concerns that potential US tariffs could trigger a global supply squeeze. Copper futures in London climbed as much as 3.4 per cent, exceeding $US11,500 a tonne, surpassing Monday’s peak after the LME reported a spike in copper orders from its Asian depots.
The strong performance of copper has positively impacted major Australian miners. BHP saw a rise of 3.3 per cent in early trading, while Rio Tinto climbed by 2.5 per cent. Smaller miners also experienced significant gains, with Sandfire Resources up by 4.7 per cent and Capstone Copper soaring by 7.2 per cent.
The recent increase in copper prices reflects growing concerns among traders and analysts about rapidly depleting global inventories. The anticipation of tariffs has led to substantial volumes of copper being shipped to the US, further straining global supply chains. This dynamic continues to support upward price pressure on the commodity.
