Saxo Bank: Copper market awaits key US tariff decision

Market observers report that uncertainty regarding US tariffs continues to distort and tighten the global copper market. Washington is expected to decide whether to extend import tariffs to refined copper, a move that could have a significant impact on global supply. Last year, anticipation of tariffs drove up copper prices on the London Metal Exchange (LME), as US buyers accelerated purchases and built up inventories ahead of potential trade restrictions, thereby reducing available supply in other regions. Analysts at Saxo Bank stated: “The imminent US Department of Commerce report due by the end of June is a potential major catalyst.” They also noted: “Recommendations supporting future tariffs may encourage further inventory accumulation ahead of their implementation, while a decision not to proceed with tariffs could prompt the current premium to unwind and exert some temporary pressure on prices.”