Copper is moving higher because supply is getting tighter and buyers are watching tariff risk closely. London Metal Exchange copper reached $13,650.50 a tonne, supported by falling inventories, rising warehouse withdrawals and expectations that US policy could reshape trade flows.
Shanghai Futures Exchange warehouse inventories fell 23.6% last week. LME-registered stocks also declined to 352,150 tonnes. At the same time, cancelled warrants on the LME rose to 37%, showing that more warehouse copper has already been booked for withdrawal.
That is positive for prices. Less available metal gives buyers less room to wait, especially if they are concerned about future tariffs. It also gives the market less protection if demand strengthens.
The US has floated a 15% levy from 2027 and a 30% levy from 2028, with a recommendation expected by the end of June. Even before a final decision, the risk of tariffs can change buying behaviour. Importers may bring purchases forward. Traders may redirect metal. Consumers may try to lock in supply earlier.
US-Iran talks remain important because any pressure around the Strait of Hormuz can affect energy costs and commodity sentiment.
KEFI Gold and Copper plc (LON:KEFI) is an exploration and development company focused on gold and copper deposits in the highly prospective Arabian-Nubian Shield. The Company operates in Ethiopia and Saudi Arabia with projects including Tulu Kapi project, Jibal Qutman EL and Hawiah.
