Mercuria Energy sees copper prices rising to $13,000 amid supply cuts

According to Bloomberg, the price of copper on New York's Comex has reached record levels this year. This has created opportunities for traders to ship cheaper metal to the United States from foreign markets, such as Africa and Asia.

Copper inventories at the Comex have reached multiyear highs. Meanwhile, supply in other countries is shrinking. As the news agency notes, the situation is exacerbated by the likelihood of US import duties coming into effect sooner than expected. Mercuria Energy estimates that by the end of March, about 500,000 tons of metal were on their way to America. Most of the copper is coming from China and Latin America, especially Peru and Chile.

Mercuria predicts that copper prices may reach $12,000 or $13,000 per ton due to a global supply shortage. Any possible cancellation, delay or reduction of tariffs could put pressure on prices.

US President Donald Trump sees the imposition of tariffs as a way to revive the country's copper industry and reduce its dependence on imports. Currently, the US authorities are reporting a significant deficit of refined base metal. Trump's decree also emphasizes that domestic smelting capacity is far behind global standards.