US Copper Imports Surge to 12-Year High as LME Stocks Plummet

Refined copper imports into the United States reached a significant milestone in July, exceeding 200,000 tonnes. This volume represents the largest monthly intake in at least 12 years, according to available data. The substantial inflow has contributed to a domestic copper stockpile that is now estimated to be pushing past 1 million tonnes, considering existing inventories in Comex warehouses, LME-registered storage, and private port facilities. The driving force behind this import surge appears to be market anticipation of potential U.S. tariffs on refined copper imports. Importers are likely accelerating their intake to secure supply before any new duties could be imposed, potentially altering the cost dynamics for the metal. Concurrently, global copper inventories held in LME-registered warehouses have experienced a prolonged downturn. These stocks have decreased for 42 consecutive trading sessions, the longest such losing streak observed since 2014. Total LME copper inventories now stand at just over 204,975 tonnes, with a notable portion already earmarked or in the process of being withdrawn. This sharp reduction in readily available LME-registered copper suggests tightening physical supply conditions in key global markets. Traders and analysts will be closely monitoring the U.S. government's stance on import tariffs, as any official announcement could trigger further price volatility. The divergence between robust U.S. import activity and declining LME inventories highlights a potential shift in global copper flows and inventory management strategies. Investors and industrial consumers should watch for any official policy statements regarding copper import duties, as this could impact pricing and supply availability in the coming weeks. The sustained drawdowns in LME stocks could also signal underlying demand strength or supply chain disruptions that warrant further investigation.