Section 232 tariffs have driven a notable shift in copper trading dynamics, impacting the traditional arbitrage between the COMEX and LME exchanges. According to FX Street, Societe Generale analysts Michael Haigh and Jeremy Sellem highlight that this shift is largely policy-driven, altering how traders approach copper markets.
The tariffs have introduced new complexities, effectively reshaping the arbitrage relationship that once allowed traders to capitalize on price differences between the US-based COMEX and the London Metal Exchange. This adjustment reflects broader geopolitical influences now playing a more prominent role in commodity trade strategies.
For Japanese investors, understanding these policy impacts is crucial as copper remains an essential industrial metal closely tied to Japan’s manufacturing and export sectors, influencing both FX and equity markets.