Why is Trafigura withdrawing such large volumes of copper from LME warehouses right now?

Trafigura is withdrawing large volumes of copper from LME warehouses because copper futures on New York’s Comex are trading at a significant premium over LME prices — a price gap driven largely by the possibility of Trump-era tariffs on copper imports into the US, making arbitrage opportunities highly lucrative; Comex prices include duties while LME prices do not, incentivizing physical delivery into Comex warehouses or to US end buyers.

How much copper did Trafigura withdraw from LME warehouses, and what is its estimated value?

Trafigura ordered the withdrawal of more than 51,000 tons of copper from LME warehouses — over 30,000 tons from US locations (New Orleans and Baltimore) and nearly 20,000 tons from Asia — with the total value exceeding $700 million, based on LME copper prices of around $13,660 per ton on Friday.