US Tariff Threat Sends Copper Prices Soaring to Record High

The copper market is facing a significant challenge due to the prospect of US import tariffs. Copper prices have reached an all-time high, with three-month copper on the London Metal Exchange rising to $14,343 per metric ton.

This surge in price is not due to a global shortage of copper, but rather a shortage of copper available outside the US. The threat of tariffs has led traders to ship metal into COMEX warehouses ahead of a potential tariff, draining inventories elsewhere and leaving what was expected to be a surplus market looking tight.

Copper stockpiled in the US is no longer available for export due to costs involved, according to Gary Nagle, CEO of miner and trader Glencore. However, analysts believe that if tariffs are imposed, prices would 'massively spike.'

Macquarie strategist Alice Fox agrees with this assessment, stating that copper stocks in COMEX warehouses could be consumed over years.