Expectations of U.S. tariffs have triggered a "mass relocation" of global copper inventories, with regional supply and demand mismatches driving up international copper prices.

Due to expectations of the United States potentially implementing tariffs on refined copper imports, global copper resources are flowing into the U.S. at the fastest rate in at least 12 years. This global movement of copper stockpiles caused by "tariff arbitrage" has led to a significant regional distribution imbalance in the global copper market and unexpectedly pushed up international copper prices amid an overall relatively ample global supply. Shipping data indicates that approximately 200,000 tons of refined copper arrived in the U.S. in July this year, marking the largest monthly inflow since records began in 2014. Currently, about 110,000 tons of metal are stored in non-LME-approved warehouses at U.S. ports. As a result, official copper inventories at the New York Mercantile Exchange have increased by more than 40% this year, reaching a historic high. Market estimates suggest that the total spot copper inventory locked in by the U.S. has approached one million tons.