Trump Tariffs Fuel Copper Rush into US
Copper shipments into the US have surged to a 12-year high as traders bet on potential tariffs imposed by President Donald Trump. The IHS Markit shipping data showed that over 200,000 tonnes of copper landed in the US last month.
This has pushed the combined US-based inventories of the New York Commodity Exchange (Comex) and the London Metal Exchange (LME) above 740,000 tonnes. Furthermore, an additional 110,860 tonnes were being held in storage at US ports as of Friday, according to the LME.
Analysts warn that should Trump's tariff threat be lifted, copper prices in the US would likely fall in the short term. The current arbitrage margin is large enough to cover shipping, insurance, and warehousing costs, with Comex copper trading at a premium to LME prices.