Trafigura, Mercuria, Glencore, and IXM recently netted over $300 million in profits after sending significant amounts of copper to the U.S., coinciding with impending metal tariffs.
Commodity traders are leading the charge in bringing unprecedented quantities of copper to the U.S. The growing price disparity with international markets has opened a lucrative arbitrage opportunity.
Following President Donald Trump’s announcement about a 50% tariff on copper—twice what was anticipated—U.S. copper prices shot up by 13%. As of now, these prices are roughly 28% higher than those on the London Metal Exchange, allowing traders to buy at LME rates, transport it to the U.S., and sell at COMEX prices.
While analysts have raised concerns about the tariffs’ effects on U.S. manufacturers, trading firms are emerging as clear beneficiaries.
This surge in arbitrage has led to a considerable stockpile of copper in the U.S. this year, primarily from trade that had been shipped. According to Market Insider, companies like Trafigura, Mercuria, Glencore, and IXM imported around 600,000 tons of “excess” copper since the November election, surpassing normal demand.
“A few months ago, copper traders globally took the gamble that Trump’s tariff message would influence the market. It didn’t work out as expected, but the rewards were incredible,” one trader commented.
Another trader noted the overwhelming influx of metals to the U.S. had effectively dried up the global copper market.
The precise profits can vary widely based on trade structure, but rough calculations indicate that this group of four firms could generate around $312 million from these 600,000 tons. After February’s imports and considering an estimated cost of $500 per ton, the average profit margin could be about $520 per ton based on the difference between LME and COMEX prices.
Insiders mentioned that Trafigura, the largest copper supplier in the U.S., typically brings in close to 200,000 tons, and Mercuria likely imported nearly 200,000 tons by the month’s end.
Meanwhile, Glencore has its own copper production and trades metals, contributing between 100,000 to 200,000 tons, while IXM has imported over 50,000 tons.
The substantial copper stockpile in the U.S. reflects a newfound rush in the commodity market triggered by Trump’s tariff policies, a trend also seen recently with gold and aluminum.
Mercuria has been particularly vocal about these trading prospects, having expanded its metal operations significantly over the last two years. Kostas Bintas, the head of metals at Mercuria, remarked in March that “copper is experiencing one of the most exceptional periods right now” due to the unusual influx into the U.S. market.
Neither Trafigura, Glencore, Mercuria, nor IXM provided comments on the situation.
