US copper scrap begins selling off

Tons of accumulated copper scrap in US inventories are finally starting to decrease due to a temporary easing of US-China trade tensions.

Copper recovered from air conditioners, buildings, and vehicles has been stockpiled in storage facilities after US shipments to China halted due to imposed tariffs. Now, with both countries agreeing to reduce the duties for 90 days, the scrap metal finally may be sold.

Supply disruptions in the scrap copper market are a clear sign of broader industry turmoil created by Trump's tariffs. Copper is considered to be an indicator of global economic health because of its extensive industrial use. With declining copper ore production, scrap becomes more important, accounting for about a third of global supply.

US scrap yards were forced to sell metal at record discounts. China also faced severe consequences, with numerous recycling plants struggling to find enough raw material.

In 2024, the United States shipped 600,000 tons of scrap copper to meet growing demand, making the secondary market of equal importance as the world's largest mines. More than half of this amount was shipped to China.