Copper traders turn to China as Trump tariff deadline approaches
Global copper traders are increasingly diverting shipments to China in the wake of President Donald Trump’s newly announced 50% tariff on copper imports, which is set to take effect on August 1.
The tariff, part of a broader effort to boost U.S. domestic production across key sectors like semiconductors and ammunition, has left traders scrambling to reroute metal that may not clear U.S. customs in time, News.Az reports, citing Reuters.
“Offers to Chinese buyers have surged since late June,” said a China-based copper trader, noting activity is now at a multi-month high.
A second trader confirmed receiving a 1,500-metric-ton offer from South America for delivery in late July or early August, describing the seller as "eager to find a home" for the cargo.
China, the world’s largest copper consumer, is emerging as a key alternative market, especially as shipments already en route to the U.S. face an uncertain arrival window.
“Only copper already loaded or sailing toward the U.S. stands a chance of avoiding the tariff. Even then, it’s tight,” said sources involved in logistics.
The Yangshan Copper Premium, a widely used indicator of the premium Chinese buyers pay over the London Metal Exchange (LME) price, dropped 5% to $62 per ton on Thursday, reflecting growing supply pressure from diverted cargoes.
Trading houses are reportedly offering thousands of tons of material initially destined for the U.S. to Chinese importers for July and August delivery.
As competition grows, prices are weakening. The most-traded copper contract on the Shanghai Futures Exchange fell for a fifth consecutive day Thursday, down 0.4% to 78,600 yuan ($10,952.87) per ton, the lowest since June 23.
“If Chilean material is now being freed up from U.S.-bound contracts, it becomes available globally,for Europe, Asia, everyone,” said Albert Mackenzie of Benchmark Mineral Intelligence.
The global copper market is closely watching how Chinese demand, and broader geopolitical trade shifts, reshape flows in the coming weeks.
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