Uncertainty over US tariffs on copper intensifies price fluctuations in London and Shanghai — Reuters

Copper prices in London and Shanghai continue to fluctuate this week. Traders’ attention is focused on Donald Trump's trade policies, particularly his decision on copper import duties, Reuters reports.

The market situation is overshadowed by the US President's Friday statement about new restrictions on Canadian goods. Late last week, the head of the United States abruptly ended negotiations with the neighboring country over taxes imposed on American tech firms.

Growing market anxiety is reflected in huge premiums for near-term copper contracts, according to Reuters experts. The risk of higher duties causes a massive movement of the commodity to the United States. As a result, other countries are recording shortages. For instance, the news agency reports about partial depletion of red metal stocks in London warehouses. On Friday, their volume on the LME decreased by 1,800 tons to the lowest level since August 2023.

Shanghai's reserves also fell 19% over the past week, reaching the minimum since early May. This provides some support for the prices, Reuters notes.