Copper Floods into US Amid Tariff Uncertainty

Global copper supply patterns are undergoing significant changes due to the COMEX-LME premium and tariff expectations. Over 200,000 tons of refined copper arrived in the United States in July this year, setting a new record for the highest monthly inflow on record.

This import surge is pushing up U.S. copper inventories, which have exceeded 740,000 tons. The combined inventories of the New York Mercantile Exchange (Comex) and the London Metal Exchange (LME) in the United States have reached a new high.

The market is paying close attention to this import wave as it has come at the expense of supply in the rest of the world. Tariff arbitrage is dominating the market, with traders incentivized to ship copper metal to the United States due to the significant premium over LME copper on Comex futures.

According to Michael Cuoco, head of the metals division at StoneX Financial, 'Tariff arbitrage is dominating the market, and its impact even outweighs the growth in actual demand.' This year, official copper inventories at Comex have surged by more than 40% to a record high.