US Dominates Global Copper Inventory as Stranded Metal Concerns Grow

Nearly 70% of global exchange copper inventory is now stored in America, according to Saxo Bank's head of commodity strategy, Ole Hansen. The U.S. consumes only about 6-7% of the world's copper, but this large share has raised concerns that some copper may be 'stranded' and unable to leave the country.

The Commerce Department has recommended a phased duty on imported refined copper, with tariffs set to rise from 15% in 2027 to 30% in 2028. This has led traders to stockpile copper inside the U.S. border before the duty is imposed, driving up prices and creating a backlog of inventory.

Hansen notes that if prices outside the U.S. rise far enough, the arbitrage may flip and the metal can sail back out. However, he also warns that this could be a long-term problem, as copper production is slowing due to declining ore grades and increasing costs.