US Copper Imports Soar Amid Tariff Uncertainty

The US copper market has seen record-breaking imports in July, but analysts warn that this may not be an actual shortage. According to Commerce Department data, the country imported a staggering 225,094 metric tons of refined copper and copper alloys, marking a 78% increase from the previous month.

This surge in imports was largely driven by traders accelerating shipments into the country before a potential import tariff. As a result, COMEX copper inventories have reached an all-time high after 53 straight days of gains, with stockpiles on the exchange standing at 764,597 short tons, or 693,630 metric tons.

The Democratic Republic of Congo was the second-largest supplier of copper to the US in July, accounting for nearly a quarter of total imports. Chile, the world's largest copper-mining nation, supplied about 46% of imports.

Carsten Menke, head of next-generation research at Julius Baer, has argued that the current shortage is 'artificial, not real.' He believes that prices should return to levels justified by fundamentals over the medium term. The US copper review was supposed to be completed nearly two months ago, but the White House has remained quiet on copper tariffs.