Copper Prices Swing on Section 232 Uncertainty

Copper prices are being affected by uncertainty around the Section 232 trade provision, which could lead to tariffs on imported copper. Over 1.2 million tonnes of copper have been drawn into US warehouses in anticipation of a decision that has yet to be made.

Giles Plumb, Head of Base Metals Trading at StoneX, notes that this is the single largest swing factor for copper, outweighing supply tightness and stock levels. The metal stays in US sheds because moving it back offers no financial return, according to Plumb.

This has had a significant impact on global copper flows, pulling metal out of other countries and leaving a shortage in regions outside the US. As a result, the copper surplus forecast is not reflected in individual regional markets.