Traders rush copper shipments to the US ahead of potential tariffs, draining LME inventories and pushing prices above $14,000 per tonne.
Copper prices climbed to near record levels, trading above $14,000 per tonne, as traders accelerate shipments into the US to avoid potential import tariffs. The rush has tightened physical markets, with LME inventories falling to a five-month low and the cash-to-three-month spread widening to $120 per tonne in backwardation.
US copper imports surged to over 35k tonnes in July, the highest monthly level in at least 12 years, while mine supply remains constrained. Low treatment charges and strong demand from electrification and power grid investments further support prices.
Analysts warn that any policy shift or narrower-than-expected tariffs could trigger a correction, unwinding recent gains. The market remains sensitive to both supply constraints and policy developments.