Shares in US mining companies with copper (HG=F) operations are rising after the metal crested $12,000 per ton for the first time ever on Tuesday morning, setting an all-time high as President Trump’s tariff policies and a string of mine accidents have roiled supply chains.
Freeport-McMoRan (FCX), whose Grasberg copper mine in Indonesia was taken nearly completely offline earlier in the year after a deadly mudslide that left several workers dead, traded up by 1.4% in the first minutes after the opening bell. Fellow mining giants BHP Group (BHP) and Teck Resources (TECK) gained 0.4% and 2.5%, respectively.
Shares in Southern Copper (SCCO), one of the US’s major copper operators, moved in the opposite direction, falling by roughly 0.4%.
The year has been strong for metals across the board. Prices on copper itself are up more than 37% year to date, while hot-rolled coil steel (HRC=F) and aluminum (ALI=F) have climbed by 32% and 17%, respectively, according to data from Trading Economics.
While geopolitics have played a role, Trump’s tariff regime has also sent copper and other metals prices soaring, dragging mining stocks along with it.
When Trump announced plans in July to impose tariffs on copper, traders rushed to move physical copper stores out of warehouses overseas and back into the US to avoid these duties, which sent prices soaring. When the administration clarified that these tariffs would not apply to raw copper ore, prices came back down.
Under current policy, semi-finished products and copper-intensive goods, such as wiring or tubes, are covered under an identical 50% tariff, although raw copper ores are excluded. Imports of both steel and aluminum are currently subject to a 50% tariff.