U.S. copper futures hit a record high on Thursday, expanding their premium against the global benchmark with just over a week left until the planned date for the U.S. import tariff on the metal.

The most active COMEX copper futures (HGc3) rose 1.2% to $5.888 a lb after hitting a peak of $5.959, while the three-month copper HG1! on the London Metal Exchange fell 0.2% to $9,910 a metric ton in official open-outcry trading.

The premium of COMEX over LME copper expanded to 31% from 29% on Wednesday.

The premium remained below the 50% import tariff planned by President Donald Trump as the market was waiting for confirmation of the August 1 deadline and a list of the copper products to which the levy would apply.

“We are cautious of copper’s current upward momentum. Any shift in the Trump’s tariff policy – whether there are any exemptions or the rate itself is toned down – could see the COMEX premium falling,” said ING commodities analyst Ewa Manthey.

Copper stocks in the COMEX-owned warehouses (HG-STX-COMEX) jumped 163% over the last four months, but inflows to them have been slowing down in recent days.

This trend is likely to persist, improving availability of copper outside the U.S. and keeping the global copper prices under pressure, Manthey said.

Apart from the approaching August 1 deadline for the U.S. copper import tariffs, the metals market focus is on China-U.S. trade talks due in Sweden next week, U.S. trade talks with other countries, and Washington’s ongoing investigation into potential import tariffs for some critical minerals.

Among other LME metals, tin FTIN1! was steady at $34,845 a ton in official activity after touching $35,100, for its highest since April 7, earlier in the session.

Supporting the metal are low stocks in the LME-registered warehouses (MSNSTX-TOTAL) and large holdings (0#LME-WHL) of tin warrants – title documents conferring ownership.

Aluminium ALI1! lost 0.1% to $2,648 a ton, while zinc ZNC1! fell 0.3% to $2,853. Both hit a four-month high earlier in the session. Lead LEAD1! and nickel NICKEL1! eased 0.2% to $2,028 and $15,540, respectively.
Source: Reuters