Posted on 21 Mar 2025
Copper futures surpassed the $11,000/tonne mark on Thursday, trading at $5.11/pound on the Comex, amid fears over potential US tariffs, Kallanish reports.
At the time of writing, the futures price had risen 3.25% over the previous five days. Comex prices are now up 27% since the start of the year, while the LME price is roughly 14% higher.
The premium between the exchanges incentivises traders and producers to keep moving supplies to the US. Bloombergestimates between 100,000 and 150,000 t of refined copper could arrive in the US in the coming weeks, a move that would avoid potential tariffs.
Last month, US President Donald Trump ordered an investigation into whether copper imports are harming national security, which could lead to potential tariffs on the red metal. This has created a temporary strong demand to import copper to the US.
The three-month LME copper price reached $10,046.50/t in a five-month high in early trading on Thursday, after closing at $9,987.50/t the day before.
Last week, Citibank estimated LME copper prices could reach $10,000/t this month, noting that a 25% tariff is likely to be implemented before the fourth quarter. Washington has already imposed 25% tariffs on steel and aluminium from the EU and countries including Canada, Mexico and Brazil.
“We still expect a pullback in copper pricing once tariff-induced US copper import demand collapses, which we expect as Section 232 copper tariff implementation draws nearer,” the analysts said at the time.
Meanwhile, the Chinese government this week announced measures to boost consumption, which also boosted prices of the red metal. The government plan is expected to revive consumption of copper-demanding goods and services.
Source:Kallanish
