Copper Prices Reflect Rising Tariff Fears Amid White House Investigation

Copper prices have been on a tear for over a year, reaching a record high of almost $6.90 per pound last week.

A specialist arbitrage trade in copper has evolved into a real-time gauge of U.S. tariff risk.

The spread between U.S. COMEX futures and London Metal Exchange prices is used by physical traders, banks, hedge funds, producers, and consumers to profit from temporary price differences and hedge against price risk.

Societe Generale analysts say the trade has been upended by the prospect of fresh Section 232 tariffs on refined copper, pending a White House investigation.

The U.S. already charges a 50% levy on imports of semi-finished copper products and certain other products made with copper.