COMEX Copper: Hit $5.8/lb on Tuesday — a new all-time high
LME Copper: Trading near $4.44/lb (~$9,784/metric ton), highlighting a growing price divergence
Copper markets erupted Tuesday after U.S. President Donald Trump announced a 50% tariff on copper imports—twice the level most analysts had expected.
The reaction was swift. U.S. buyers rushed to front-load purchases, driving futures sharply higher. Year-to-date, copper has now climbed 37%, outpacing gains in gold (+25%) and silver (+27%).
A Fragmented Market
While U.S. copper prices are breaking records, global prices have pulled back. LME copper slipped over 1% on Wednesday as supply originally earmarked for U.S. buyers is redirected to other markets. The result: a fractured global copper market, with U.S. prices trading at a widening premium to international benchmarks.
China and other large consumers may benefit from the sudden supply shift, but the disruption is already being felt in procurement chains worldwide.
Technical Picture
U.S. copper remains in a strong uptrend. On the four-hour chart, prices are consolidating after the initial tariff spike.
Upside: A break above resistance at $5.6233 could trigger another leg higher, particularly as buyers continue to hedge ahead of the eventual implementation.
Downside: A close below $5.4154 would expose copper to a test of $5.1348. A further decline could bring the rising trendline into play as the next major support level.
What’s Next
This tariff reshapes the copper landscape. Beyond the immediate price impact, investors will be watching its effect on global supply chains, inflation expectations, and the earnings outlook for miners and copper-intensive sectors.
Volatility is likely to remain elevated. Positioning and timing will be critical in the weeks ahead.
