Archive · 26 Jun 2025
Copper Prices Surge on Tariff Concerns, Goldman Warns of Shortages
Copper prices are spiking because of planned US tariffs on imported copper.
This has caused a rush to ship copper to the US before the tariffs start.
The price increase is most noticeable in the difference between how much it costs to buy copper now versus in the near future, which has hit a four-year high.
As a result, there is not much copper available for traders to buy.
Goldman Sachs expects this shortage to get worse before the tariffs actually begin, which could create problems for people who need copper for things like construction or electronics.
Copper price spread surged to a four-year high on the London Metal Exchange.
US import tariffs on copper are planned, driving prices up.
Traders are shipping record volumes of copper to the US to avoid tariffs.
Goldman Sachs expects copper shortages to worsen before the tariffs take effect.
LME inventories are critically low, causing issues for traders.
- Who
- Traders and industrial hedgers
- What
- Copper price spread surged due to US import tariffs.
- When
- A key one-day copper price spread surged to the highest level in four years.
- Where
- London Metal Exchange and New York
- Why
- Driven by US import tariffs and dwindling inventories.
Industrial Hedgers
Traders
Impact on Traders
Industrial Hedgers
May face huge losses due to the rising price spread.
Traders
Benefit from increased prices.
- Spread High
- $98 a ton premium
- LME Inventories
- Critically low
- Three-Month Contract
- Climbed as much as 1.8% to $9,888 a ton
- US Tariff Decision
- Expected by September
- Price Jump in New York
- As much as 3.7%