Copper Prices Defy Record Stockpiles Amid Tariff Uncertainty

Copper prices remain near historic highs despite record stockpiles in U.S. warehouses. According to CME Group's latest metals update, COMEX-approved warehouses now hold approximately 700,000 short tons of copper.

The unusual combination of high inventories and expensive metal has been exacerbated by tariff uncertainty, which has encouraged physical copper shipments into the United States. This has led to a surge in domestic inventories and regional price premiums.

Copper's surge is not solely due to a sudden increase in global supply; rather, it reflects where copper is stored. Traders have been moving copper into U.S. warehouses as uncertainty around future import tariffs creates an incentive to get material into the country before trade rules change.

Larger demand expectations also contribute to prices holding up. CME points to AI infrastructure and the energy transition as structural sources of copper demand, including data centers requiring electrical equipment and grid expansion needing cables and transformers.