President Trump imposes 10% tax on all imports, Vietnam bears 46%
03-04-2025
Copper metal price increased sharply to 10,116 USD/ton due to the impact of the rising USD and concerns about import tax policy in the US, causing inventory fluctuations on the LME floor.
Copper metal price on March 26 on the London Metal Exchange (LME) recorded an impressive increase of 1.64%, reaching 10,116 USD/ton – the highest level since the beginning of the year. This strong increase occurred in the context of many international factors directly affecting the global metal market, especially copper – a metal that plays an important role in the electric vehicle industry, military, energy infrastructure and consumption.
The US dollar is at a three-week high against the yen, posting broad-based gains, in part due to upbeat US services data and cautious optimism over the US government’s tariff policy. The rise in the US dollar makes metals priced in the greenback more expensive for buyers using other currencies, helping push copper prices to record highs.
Another factor traders are watching is the possibility of the US imposing import tariffs on copper. Last month, US President Donald Trump ordered an investigation to assess the possibility of imposing tariffs on imported copper products. The move is part of an effort to restore domestic US production capacity for the important metal, which is widely used in electric vehicles, power grid infrastructure, defence hardware and many strategic consumer goods.
The impact of the tariff policy is not only expected to affect trade flows but also disrupt the global reserve system. According to traders, the phenomenon of copper moving from the LME system to the US is clearly reflected in inventory figures. The amount of copper in warehouses in the LME network has decreased by 18% in the past four weeks. Notably, canceled warrants – representing the volume of metal ready to be delivered – currently account for 50% of total inventory, equivalent to about 111,000 tons that will leave the warehouse in the coming time.
In the context of many geopolitical and economic variables, the organization Benchmark Mineral Intelligence warned that markets will closely monitor developments related to the tariff policy on copper in the coming weeks. In addition, the regular meeting of the China Metallurgical Purchasing Group (CSPT) in the second quarter is also expected to provide important signals on the floor purchase price and the possibility of adjusting output in a coordinated manner among domestic enterprises.
In related developments, prices of other metals on the LME also fluctuated slightly. Aluminum increased by 0.1% to 2,618 USD/ton, lead increased by 0.7% to 2,050.5 USD/ton, zinc increased by 0.3% to 2,955 USD/ton. Tin and nickel both increased by 0.3%, reaching 34,460 USD and 16,055 USD per ton, respectively.
In the Chinese market, the SHFE (Shanghai) exchange also recorded an upward trend in some metals. SHFE copper rose 1.2% to 81,910 yuan ($11,281.59) a tonne. SHFE aluminium was little changed, up 0.02% to 20,705 yuan a tonne, while zinc edged up 0.3% to 24,125 yuan a tonne. Lead, on the other hand, fell 0.1% to 17,560 yuan, nickel fell 0.2% to 129,220 yuan and tin fell 0.5% to 274,870 yuan.
