FOUR major commodity trading houses stand to earn extraordinary profits exceeding $300m after positioning themselves ahead of Donald Trump’s copper tariff announcement, capitalising on one of the most lucrative metals arbitrage opportunities in decades.
Trafigura, Mercuria, Glencore and IXM have accumulated approximately 600,000 tons of surplus copper in the United States since November’s election, anticipating the trade barriers that materialised this week when Trump declared 50% tariffs on copper imports from August 1, according to a report by the Financial Times.
The tariff announcement last week triggered an immediate 13% surge in US copper prices within minutes, creating a substantial 28% premium over London Metal Exchange rates. This price differential has transformed what began as a speculative trade into a highly profitable venture.
“Months ago, copper traders worldwide took a punt that Trump’s tariff pitch for their market was real, not bluster. They were right, and their collective pay-off has been spectacular,” Tom Price, an analyst at Panmure Liberum, told the Financial Times.
The strategy involved purchasing copper at international prices, shipping it to American markets, and selling at the higher domestic rates. Conservative estimates suggest the four firms could collectively earn around $520 per ton profit, totalling approximately $312m, the newspaper said.
Trafigura, typically the largest US copper supplier, imported roughly 200,000 tons, whilst Switzerland-based Mercuria brought in nearly 200,000 tons. Glencore, which both produces and trades copper, imported between 100,000 to 200,000 tons, with IXM contributing over 50,000 tons, it said.
The copper stockpile represents the latest commodity market disruption caused by Trump’s tariff policies, following similar patterns in gold and aluminium markets earlier this year. Market participants noted that the massive US accumulation has depleted global copper availability elsewhere.
