A major Swiss commodity trading firm is reportedly preparing to remove substantial quantities of copper from warehouses in New Orleans, according to two industry insiders who cite an upcoming U.S. tariff determination as the likely motivation.
The Switzerland-based company declined to provide comment on the matter.
Market participants have already relocated significant copper volumes to American facilities in preparation for potential import duties that could increase transportation expenses. This possibility has boosted the worth of current inventory since keeping copper within U.S. borders enables purchasers to secure supplies at rates established before any tariffs take effect.
Federal officials are anticipated to announce by the end of June whether import duties will be placed on copper metal following an ongoing assessment.
The previous year saw the implementation of a 50% duty on copper tubing and wire products, which was part of broader levies affecting semi-processed copper goods after a similar evaluation.
Copper stored in exchange-approved U.S. facilities typically remains in designated trade zones or bonded areas, meaning it hasn’t officially entered American commerce and remains exempt from import duties until moved into the domestic marketplace.
Exchange records revealed that more than 30,000 metric tons of copper were marked for withdrawal in New Orleans on Thursday, bringing the total amount designated for removal in that American city to 45,675 tons.
While exchange information doesn’t reveal which firms are behind inventory transfers, the two anonymous sources identified the company as the Swiss trader.
Thursday’s total withdrawals exceeded 50,000 tons. Most of the additional 22,000 tons were located in exchange warehouses in Kaohsiung, Taiwan.
Overall copper stocks marked for withdrawal represent almost 30% of the total inventory at 391,900 tons.
American commodity exchange warehouses currently hold 574,864 metric tons of copper, representing an increase of more than 550% since a national security investigation was ordered in February of last year to assess whether the product is entering the country in volumes that could threaten security interests.
Since that February directive, traders have been removing copper from London and Shanghai exchange facilities to ship to the United States, according to industry contacts.
