Copper Prices Soar as US and China Engage in Metal Frenzy
The copper market is experiencing a significant tightening as the US and China compete for the metal. This surge in demand has pushed futures prices in London past $14,000 a ton, with many traders predicting that global benchmark prices could soon reach all-time highs of over $14,500.
This price increase is largely due to trade dislocations caused by the gravitational pull of the world's two largest economies. The US has seen an unprecedented hoarding of copper on its shores in anticipation of a tariff decision, while traders have been stepping up shipments to China to alleviate tightness there.
The arbitrage trade that encourages cargoes to the US has accelerated to the fastest pace in at least 12 years, with futures on New York's Comex reaching a record high. The White House is expected to announce a decision on whether to extend duties on semi-finished copper products to raw metal, which could further impact the market.