US copper contracts trade at large premiums to other exchanges

Donald Trump's tariff policies have destabilized the industrial metals markets, disrupting supply chains and increasing inflows into the United States. Such dynamics have been reflected in prices. Copper prices on the London Metal Exchange (LME) rose by 12% in the first six months of the year. An even more impressive result was shown by tin, Reuters reports.

Other metals continue to recover from the effects of broader US restrictions imposed in April. The news agency notes growing investor concern about the impact of tariffs on global production activity.

American copper contracts are currently trading at a $1,200 per ton premium to the international price on the LME. While US exchange inventories are filling up, others are recording a deficit.

Conditions in the industrial metals markets remain volatile. With higher US duties on copper, the situation will change again, Reuters says. Investors have to make decisions amid high uncertainty and instability, the news agency's experts emphasize.