US May Finalize 15% Refined Copper Tariff by End-Jun; G Sachs Lifts End-Year LME Copper Price Forecast by Over 10%

Copper prices in New York and London rose as less than one month remains before the US tariff deadline. The US Secretary of Commerce must submit an updated recommendation on refined copper tariffs to US President Donald Trump by Jun 30, in order to determine whether the US will formally impose a 15% tariff on refined copper starting next year. Ahead of the official decision, the premium of US copper prices over the rest of the world widened again, prompting a surge of copper shipments into US ports.

As of 11:44 am today (1st), copper prices on the London Metal Exchange (LME) rose 0.4% to USD13,687.5 per ton; copper futures on the New York Mercantile Exchange climbed 1% to USD6.45 per pound, marking the highest closing level since May 14.

Copper prices have accumulated a 5% gain in May. G Sachs has raised its end-year price forecast for LME copper by more than 10%, reflecting US stockpiling of copper and weaker-than-expected mine supply, which is expected to tighten market supply. The bank now expects copper prices to reach USD13,735 per ton by the end of this year, more than 10% higher than its previous forecast of USD12,465 per ton. The projection is based on expectations that the US will once again delay tariffs on refined metals. (mn/da)