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| LME Copper Price |
US Tariff Policy Shakes Global Copper Market
Rising Inventories and Trade Uncertainty Pressure Prices
The London Metal Exchange (LME) copper price fell 1.81% to $9,616 per tonne on July 7. This decline reflects uncertainty in copper futures, mainly due to US President Donald Trump’s proposal of a 50% tariff on copper imports. The tariff threat, expected to take effect by August 1, has unsettled market sentiment and disrupted price momentum globally. The focus keyphrase, “LME copper price,” appears throughout this article, highlighting the central theme of recent market volatility.
The proposed US tariffs exacerbate existing pressures on LME copper prices. The tariffs fall under Section 232 investigations and could sharply increase import costs. Meanwhile, LME copper inventories rose by 4,625 tonnes to 107,125 tonnes, reflecting increased supply. This shift from backwardation to a slight contango signals a weakening market outlook. The uncertainty surrounding tariff enforcement has caused traders to hesitate, impacting futures prices and dampening demand.
Despite the short-term price drop, analysts suggest that Trump’s tariff announcement may be a kneejerk reaction rather than a final decision. Market participants question the timing and implementation feasibility of the tariffs. Importers dependent on the US market face logistical challenges, as copper shipments in transit may not clear customs before the tariff deadline. Therefore, LME copper prices remain vulnerable to further volatility amid ongoing geopolitical and trade policy risks.
ScrapInsight Commentary
The proposed 50% US tariff on copper imports poses significant disruption to global supply chains and pricing structures. While inventories have increased, market uncertainty may suppress demand temporarily. Should tariffs materialize, the US import market could contract, elevating global copper price volatility and influencing recycling demand within the scrap metal sector.
