Copper rose above $10 000/t on the London Metal Exchange for the first time since October, as buyers in the US race to import supplies of the key industrial meal ahead of potential tariffs.
Prices have risen 14% since the start of the year on the LME. Still, that compares to a 26% surge for copper futures in New York, which are close to an all-time high. The premium has created a huge incentive for traders and producers to keep moving supplies to the US before any potential tariffs are imposed.
The bull run for copper comes after President Donald Trump ordered the US Commerce Department to conduct a probe into possible levies, citing national security grounds. The president’s comments have spurred buyers to ramp up purchases of the refined metal this month.
Demand for copper is so high that traders Trafigura Group, Glencore and Gunvor Group have redirected shipments destined for Asia to the US to meet demand, Bloomberg reported Wednesday.
Goldman Sachs Group and Citigroup both see the Trump administration imposing a 25% tariff on copper imports this year.