Copper prices dipped from their peak since early June as traders kept a close watch on potential announcements from the White House concerning import tariffs on the metal.
More than three weeks ago, the US Department of Commerce was anticipated to deliver new recommendations on tariffs to President Donald Trump, but no updates have been shared to date. The looming possibility of tariffs has resulted in significant metal inflows into the US this year, tightening global copper supply.
A note from Jinrui Futures Co, a Chinese brokerage, emphasized that updates on US copper tariffs are a “key factor to monitor in the near future.” While prices have solid backing, they highlighted that macroeconomic and geopolitical uncertainties still linger.
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In the previous session, copper futures on the London Metal Exchange approached $14,000 a ton, propelled by signals that supply is not keeping up with demand, particularly in the vital Chinese market. However, rising tensions between the US and Iran, along with uncertainties regarding Trump’s likely tariff announcements, are moderating bullish sentiments.
Last year, the US Department of Commerce proposed a phased implementation of import tariffs on refined copper, starting at 15% in January 2027, with a review planned for the end of June this year. If Trump adheres to this strategy, it could trigger a new influx of shipments to the US.
Despite the uncertain backdrop, various indicators point to a hotter market. Import premiums in China have skyrocketed to peak levels in 2023 at $115 a ton, spurred by interruptions in domestic scrap supply. Furthermore, canceled warrants on the LME—requests to withdraw metal from exchange warehouses—surpassed 170,000 tons on Tuesday, with a notable portion likely headed for China.
As of 12:54 p.m. Shanghai time, copper was trading down 0.4% at $13,825.50 a ton, following a 1.9% surge on Tuesday. Other metals exhibited minor changes or slight increases on the LME.
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