Uncertainty over US tariffs keeps copper trading in a tight range
XLB•Copper was up 0.1% at $14,353 a metric ton, extending a tight range into a third session as uncertainty over potential US tariffs and inflation concerns weighed on risk sentiment. Goldman Sachs expects prices to average $15,400 in 2027, up from $14,700 at the end of 2026.
1. Prices remain range-bound
Benchmark three-month copper on the London Metal Exchange was up 0.1% at $14,353 a metric ton by 0955 GMT on Tuesday. Prices have traded in a tight range for three straight sessions as uncertainty over potential US import tariffs and concerns about inflation driven by higher oil prices kept risk sentiment subdued.
2. Supply and demand factors
Copper has risen 55% since Donald Trump returned to the US presidency in January 2025, despite global demand falling 0.5% to 27 million metric tons, Panmure Liberum analyst Tom Price said. Goldman Sachs said a shortage of copper scrap in China is increasing the need for refined copper, while the US continues to import metal and build stocks ahead of potential tariffs. The Yangshan copper premium rose 0.7% to $138 a ton, its highest in almost four years, while Comex inventories stood at a record 718,199 metric tons, up from 87,241 in January 2025.
3. Tariff decision pending
The White House has yet to decide on tariffs on refined copper, with the administration increasingly focused on affordability ahead of November's midterm elections. Chinese broker Everbright Futures said cautious purchasing at high prices and tariff uncertainty could keep prices range-bound in the near term.
