Copper is piling up in American warehouses, totaling as much as 2 million tons, according to BMO Capital Markets. This build-up stems from policy uncertainty after President Trump imposed tariffs on copper products in July last year but left refined metal untaxed. Buyers stockpiled metal to avoid potential future price hikes, causing copper futures to rise over 16% this year with U.S. prices often fetching a premium.
Analysts suggest the uncertainty may be intentional policy. Other drivers include strong demand from electric cars, grid upgrades, and data centers, while global mine supply faces challenges due to weather disruptions in Chile, the top producer. For now, the focus remains on when the copper in U.S. warehouses might be released into the market.
Source: Wall Street Journal Markets · Summarized by HeadlinesBriefing