Copper Prices Near $6 After 20% Spike as Traders Rush to Front-Run Duties

Copper prices spiked to historic highs after Donald Trump’s dramatic tariff threat upended global metals markets and sparked a rush to...

Front Loading Sends Copper Prices to All-Time High

Quick overview

  • Copper prices surged to historic highs following Donald Trump's announcement of a 50% tariff on industrial metals, with US futures jumping 20% in a single session.
  • The tariff threat intensified a pre-existing scramble for copper supplies, leading to significant inventory drains and a spike in demand as traders rushed to secure metal before new duties took effect.
  • New York copper contracts experienced their largest one-day increase ever, trading at a substantial premium to London futures, indicating both speculative interest and logistical urgency.
  • Analysts caution that the potential implementation of these tariffs could disrupt supply chains and raise costs for US manufacturers, contributing to ongoing market volatility.

Copper prices spiked to historic highs after Donald Trump’s dramatic tariff threat upended global metals markets and sparked a rush to secure supply.

Comment on 50% Tariffs Sparks Record Copper Rally

Copper markets saw a wild, historic session after former President Donald Trump declared he would impose a 50% tariff on industrial metals. The most-traded US copper futures exploded higher from roughly $5 per pound to an intraday record of $5.9530, marking a stunning 20% gain in just hours.

Though prices later settled back to around $5.5055 per pound, the move underscored the intense volatility unleashed by the tariff announcement.

Copper Chart Daily – The Support Held

Traders reacted instantly to the White House threat by rushing to lock in metal supplies before any new duties take effect. Shipping records have already been showing a surge in copper inflows to the US in recent months as merchants sought to front-run anticipated tariffs, and Trump’s comments intensified the scramble.

Tight Supply, Inventory Drain, and Backwardation

The copper market was already primed for an upward move. In the final week of June, prices had pushed to a three-month high on the London Metal Exchange (LME) thanks to tighter supply conditions and improved risk sentiment amid hopes for easing tensions between the US and China. The 20-day Simple Moving Average (SMA) on daily charts had been providing solid technical support, reinforcing the bullish trend.

But Trump’s tariff threat sent the market into overdrive. Inventories on the LME and in China rapidly drained as traders rerouted record volumes of metal to the US. This surge in demand drove the market into steep backwardation, a structure where near-term prices trade at sharp premiums to longer-dated contracts—a classic sign of acute supply stress.

New York Contracts Blow Out vs. London

In the wake of Trump’s comments, New York copper contracts recorded their biggest one-day rise ever, at one point trading at a 25% premium to comparable London futures. Such an unprecedented spread signals not just speculative enthusiasm but a genuine logistical rush to move metal into US warehouses before the tariffs bite.

Market participants now face the prospect of even higher short-term prices as exporters and merchants compete to deliver copper ahead of the tariff implementation date. The surge in Comex prices will almost certainly incentivize even more shipments to the US, likely keeping spot premiums elevated in the near term.

Outlook: Short-Term Gains but Policy Uncertainty Looms

While today’s spike showcases the market’s extreme sensitivity to trade policy, it also raises serious questions about sustainability. Many analysts warn that if Trump’s tariffs are enacted as threatened, they could disrupt established supply chains, raise costs for US manufacturers, and trigger retaliatory measures from key trading partners.

For now, traders are bracing for continued volatility as they try to anticipate both the timing and scope of any new duties. With inventories tight and shipping logistics already strained, the copper market looks set to remain highly reactive to every new policy headline, leaving prices vulnerable to more dramatic swings in the weeks ahead.

ABOUT THE AUTHOR See More
Skerdian Meta
Lead Analyst
Skerdian Meta Lead Analyst. Skerdian is a professional Forex trader and a market analyst. He has been actively engaged in market analysis for the past 11 years. Before becoming our head analyst, Skerdian served as a trader and market analyst in Saxo Bank's local branch, Aksioner. Skerdian specialized in experimenting with developing models and hands-on trading. Skerdian has a masters degree in finance and investment.

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