U.S. tariff threat tightens copper availability as LME three-month tests $14,343 a ton
AI Market Summary
Potential U.S. tariffs are distorting copper flows: COMEX's elevated premium is pulling metal into U.S. warehouses, lifting inventories there while draining availability elsewhere. LME warrant cancellations and tightening ex-U.S. stocks have pushed prices toward record territory despite no global deficit. If U.S.-held copper becomes effectively sequestered, an expected surplus could functionally shift toward balance or tightness, increasing near-term volatility and basis risk.
Impact level
● High
Affected assets
NCCO724COPPER2USD/USDT+1.42%
AI Insight · NCCO724COPPER2USD/USDTAI Insight
▲ Bullish
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A potential U.S. import tariff is reshaping the copper market by pulling metal into the United States and tightening availability elsewhere. LME three-month copper rose as high as $14,343 per metric ton on Tuesday after 65,400 tons were ordered for withdrawal from LME warehouses in recent days. Traders have been arbitraging a higher COMEX premium by moving copper into the U.S., pushing COMEX inventories to a record 675,185 tons after 46 straight days of increases. Glencore’s CEO said copper shipped into the U.S. is unlikely to be exported again because of the costs, leaving what had been expected to be a surplus market looking far tighter in practice.
