Mercuria Moves to Withdraw $500 Million in Copper Amid Looming Global Shortages
Mercuria Orders $500M Copper Withdrawal from LME as US Tariff Threat Fuels Global Supply Crunch
Mercuria Energy Group Ltd. has ordered roughly $500 million worth of copper for withdrawal from warehouses supervised by the London Metal Exchange (LME), positioning itself ahead of a possible global supply squeeze driven by looming US tariffs.
According to people familiar with the matter, Mercuria was the primary party behind requests to withdraw about 50,000 tons of copper from LME depots on Wednesday. The cancellations mark the largest removal of LME copper inventories in more than a decade, helping push prices toward record highs above $11,500 per ton.
Copper pricing and trade flows have been dramatically reshaped since February, when US President Donald Trump announced plans to impose tariffs on the metal to boost domestic supply.
The move drove New York copper futures sharply above LME prices, triggering a surge in US imports as traders including Mercuria, Trafigura and Glencore took advantage of the arbitrage opportunity.
The trade briefly slowed in late July after Trump unexpectedly excluded commodity-grade forms of copper from the tariffs. But in recent weeks, trading houses have again accelerated shipments to the US as speculation grows that duties on primary copper may still be imposed next year. Rising New York futures have opened another window for importers to front-load supplies ahead of any final tariff decision.
Kostas Bintas, who joined Mercuria last year to lead its rapid metals expansion, told Bloomberg he expects prices to climb further as trade flows tighten, warning that buyers outside the US could face acute shortages early next year.
“This is the big one,” Bintas said. “If the world keeps going like this we will be left without copper cathodes in the rest of the world.”
Mercuria declined to comment on the LME withdrawals.
Bintas’ outlook aligns with predictions from other major trading houses including IXM and Gunvor, whose executives have warned that global mine disruptions could soon create significant supply gaps. Copper prices are approaching record territory despite weakening demand trends in China, the world’s largest consumer, as manufacturers prepare to compete for scarcer material.
The LME’s global warehousing network is designed as a market of last resort, absorbing metal during surpluses and releasing it during shortages. Much of the copper behind the LME contract originates from China and Russia, and cannot be delivered against New York’s Comex futures, leaving traders to redirect stocks to meet US demand.
Additional withdrawal orders for 7,450 tons of copper were placed on Thursday, reflecting expectations that LME inventories will continue to be drawn down in order to free up supply for US buyers.
The United States currently holds substantial copper stocks in ports and exchange storage, but traders do not expect those inventories to flow out while Comex prices remain at a premium and uncertainty over tariffs persists.
Analysts at Goldman Sachs said the latest rally was driven by LME cancellations and predicted a renewed acceleration of copper flows into the US during the first half of 2026.
A spokesperson for the LME declined to comment.
