Copper ETF Could See Volatility as US Stockpiles Surge 300% to 590,000 Tons
US copper inventories climbed 300% in 12 months to 590,000 short tons, the highest in 30 years, as traders stockpiled ahead of potential 15%-25% tariffs. Investors may see a price dip after mid-2026 tariff resolution, but long-term AI-driven demand could boost flows into the United States Copper Index Fund.
1. US Copper Stockpile Reaches Multi-Decade High
US warehouses now hold 590,000 short tons of copper in COMEX-approved storage, a 30-year record, after inventories surged nearly 300% over the past year as traders moved metal stateside to circumvent possible 15%-25% U.S. tariffs.
2. Tariff-Driven Glut and Short-Term Price Risks
Market analysts warn that once tariff uncertainty resolves around mid-2026, much of the excess copper could be released, potentially driving a sharp local price decline before global conditions tighten.
3. AI Demand and CPER Fund Flow Implications
Projections of AI-driven demand—estimating up to 50,000 tons per data center and anticipating a 130% rise in power consumption by 2030—suggest structural shortages later in the decade, supporting long-term inflows into the United States Copper Index Fund.