Copper supply tightens in Asia amid US tariff risks

The Asian copper market is now experiencing a contraction, which is increasing global supply instability. Prices are rapidly escalating amid rumors that President Donald Trump may enact tariffs on imports of the industrial metal, as reported by Bloomberg. 

The premium for copper in China has nearly doubled this month, reflecting the added cost of shipping refined materials. In parallel, expenditures associated with importing the metal in Southeast Asia has reached their highest since April 2024. 

Copper quotes have seen a swift surge when the year began. The agency pointed out that the price growth for New York contracts exceeded that of London ones. Such a market imbalance has caused inventories to shift from non-American markets to the United States. A spokesman from Mercuria Energy Group Ltd. Costas Bintas described these shifts as quite unprecedented.  

Shipments of imported copper to China have been on the decline ever since. In the first two months of 2025, their volume has already fallen by 11%. However, exports of the metal have more than doubled, creating a prime arbitrage opportunity in the market, Bloomberg said.