700,000 Tons of Copper Are Sitting in U.S. Warehouses, So Why Is Price Still High?

What happened

Copper warehouses tied to COMEX hold a record 700,000 short tons of copper, according to the article, yet copper prices remain near historic highs as tariffs, artificial intelligence, and electricity grid demand reshape the market.

Confirmed

Global impact / market context

Record warehouse copper usually signals weak demand and would normally push prices down, which means the high price suggests tariffs and strong AI and grid buying are supporting copper demand despite the large stockpile.

Analyst inference

Tariffs on copper can raise the delivered cost for buyers, so stored metal may not reach them cheaply; AI data centers and grid upgrades add steady copper use, keeping prices near highs even with 700,000 short tons in warehouses.

Analyst inference

What to watch

1. Watch whether COMEX warehouse copper stays at a record 700,000 short tons or falls, since a drop would mean stored copper is leaving for buyers. Confirmed
2. Watch whether tariffs on copper are kept, removed, or changed, because tariff costs can decide whether stored copper is sold or kept. Proposed
3. Watch whether AI and electricity grid copper demand keeps growing, because slower demand could let the 700,000 short tons pull prices down from historic highs. Analyst inference

Evidence

• coinpaper.com