Copper Sector: US Copper Prices Fall as Trump’s Tariffs Exclude Raw and Refined Copper

However, the exclusion of raw copper tempered the impact, and US copper prices quickly reversed after an initial spike.

SEATTLE (Scrap Monster): President Trump’s targeted copper tariffs, which exclude raw materials, took markets by surprise and triggered a strong reaction. The initial announcement led to supply shortages in Europe, as traders rushed to redirect shipments to the US, anticipating broader restrictions. However, the exclusion of raw copper tempered the impact, and US copper prices quickly reversed after an initial spike.

Despite the US administration’s push to strengthen domestic supply through scrap retention rules, the US is not expected to significantly ramp up mining in the short term due to long development timelines and limited smelting capacity. As a result, the US now holds copper inventories at their highest levels since 2004 and may begin re-exporting surplus supplies, potentially disrupting global trade flows.

Globally, copper supply remains tight. Chinese smelters are facing ore shortages, and inventories at Chinese ports have dropped to their lowest levels this year. Meanwhile, treatment fees are historically low, signalling stress in the upstream supply chain. With demand from sectors like AI and renewable energy continuing to grow, the market remains constrained and volatile.

In the months ahead, copper prices are expected to stay capped by weak demand in China and ongoing trade uncertainty. As US stockpiles begin to flow back into global markets, particularly in Europe and Asia, price convergence across regions is more likely to happen than sustained price increases.

Courtesy: www.credendo.com