Accelerated copper import race to America before Trump’s contributions have become valid
The frequency of copper supplies in the United States increases significantly in the next few weeks, in the last race of merchants, metal was imported before the beginning of 50 percent customs duties imposed by US President Donald Trump, which became higher than expectations.
On Tuesday, the collection announcement led to an increase in copper futures on the Comic book exchange by more than 12 percent to achieve record levels. According to Reuters, US Minister of Trade Howard Lotondnik said the fees will probably be used in late July or August 1.
This deadline is the end of an exceptional window that the merchants operated over the past months, since they removed a large amount of copper from warehouses around the world, and sent it to the United States to take advantage of the price of about $ 2600 per metropolitan ton on Wednesday.
According to analysts and merchants, deliveries that are currently at sea, or those who come from Latin America are most likely in time. Morgan Stanley analysts indicated that “deliveries that are already on the way to the United States will try to achieve on time, which means that the markets outside America will not witness an increase in the supply. But it will be difficult to send additional deliveries in this short time. ”
One of the Chinese copper merchants, who asked not to be identified, added that the manufacturers in Chile, where there are contracts with China, will most likely redirect the shares of the “comics” of the stock exchange to the American market, while other commercial species are sent to China.
According to analysts, this last impulse can lead to a further lack of proposal outside the United States in the short term, and the influence of the American market will decrease later, which will allow the abundance of expenditure materials to other markets.
According to GB Morgan analysts, the United States imported the equivalent of the general annual copper consumption during the first half of the year, and they expect imports to decrease within months after the use of fees depending on local users on current shares.
Despite the growth of the American market, copper prices decreased in London and Shanghai futures by more than one percent after the announcement of fees, while City expects that copper prices outside the United States are landing about $ 800 per ton over the next three months. The record price of copper on the London Stock Exchange amounted to $ 9,603 per ton of the table until 09:41 according to Greenwich.
But, despite this decrease, it is expected that the decrease will remain limited from a lack of supply in the world market, since global demand still exceeds the supply.
“Prices for copper on the Shanghai Stock Exchange are currently under some pressure, but they are a candidate for recovery after the US fee is valid from the continuing weak basic factors in the short term,” said Zhao Yunchen, Brakanner Mineral Intelligence analyst.
