Global Copper Tug-of-War Driven by US-China Competition

China and the US are engaged in a global copper supply tug-of-war. Stockpiles on the Shanghai Futures Exchange have plummeted 82% since early May, hitting a two-and-a-half-year low of approximately 69,000 tonnes by late July.

Meanwhile, COMEX inventories in the US have surged past 650,000 tonnes, a record high, with a year-to-date increase of over 40%. London Metal Exchange stocks have dropped 28% over the same period.

The metal hasn't vanished; it's simply been relocated. American importers are stockpiling copper ahead of potential tariffs on refined imports, driving US buyers to secure what they can, while Chinese buyers scramble for the remaining metal.