Copper stockpiles shrink as US and China compete for metal

Two of the world’s largest economies are playing tug-of-war with the global copper supply. Stockpiles on the Shanghai Futures Exchange have cratered 82% since early May, falling to roughly 69,000 tonnes by late July, the lowest level in about two and a half years. Meanwhile, on the other side of the Pacific, COMEX inventories in the US have ballooned past 650,000 tonnes, a record, surging more than 40% year-to-date. The metal hasn’t disappeared. It’s just moved. A tale of two stockpiles London Metal Exchange stocks have dropped 28% over the same period that COMEX warehouses have been filling up. US buyers have been stockpiling ahead of potential tariffs on refined copper imports, creating a dynamic where American importers are pulling metal westward while Chinese buyers scramble to secure what’s left everywhere else. In China, the domestic spot premium climbed to 435 yuan, roughly $61 per tonne, by mid-July, the highest it has been since May 2025. The Yangshan import premium hit $103 per tonne during the same window. COMEX copper has been trading near $6.55 per pound, with LME hovering around $13,850 per tonne. Why both countries want so much copper China’s hunger for the red metal...