Copper prices edged higher on Friday, poised for a modest weekly advance as shrinking stockpiles outside the United States offset broader macroeconomic concerns. The metal's resilience comes amid geopolitical tensions and shifting trade policies that have reshaped global supply dynamics. Main Developments Benchmark three-month copper on the London Metal Exchange rose 0.2% to $13,626.50 a metric ton by 0925 GMT, recovering after two consecutive sessions of decline. The metal is on track to end the week 0.7% higher, even as an escalation in the Middle East conflict pushed oil prices above $100 a barrel, dampening global economic growth expectations. Read also: Palm Oil Hits 15-Week High on Energy Rally and Biodiesel Demand In China, the top consumer of copper, Shanghai Futures Exchange inventories dropped by 12.9% from the previous week to 69,610 tons—the lowest level since February 2024. LME copper stocks overall stand at 276,775 tons, the lowest since March, though available inventory rose 5.2% to 113,450 tons after 3,250 tons of reverse cancellations in South Korea and Taiwan. Background The re-warranting of copper—where metal previously earmarked for removal is placed back on warrant—has cautioned buyers after a series of earlier withdrawal requests, according to Sandeep Daga, head of research at Metal Intelligence Centre. In the United States, Comex copper stocks surged to a record 639,147 metric tons, driven by anticipation of potential import tariffs on the metal. “They’ve got all the copper in the world, but anyone who’s buying that out of the warehouses on a spot basis is paying a lot of money for it,” said John Meyer, analyst at SP Angel. The Trump administration on Friday imposed new tariffs of 10% and 12.5% on goods from 60 trading partners over allegations of lax forced labor enforcement, though the move had little immediate market impact. Why It Matters The divergence between tightening non-US stocks and record high US inventories underscores how trade policies and geopolitical risks are fragmenting global copper markets. This split creates pricing disparities that affect buyers and sellers differently, with spot purchasers in the US facing higher costs despite ample supply. What's Next Market participants will monitor further developments in US tariff policy and Middle East tensions, which could influence supply routes and demand forecasts. LME and Shanghai inventory data in coming weeks will reveal whether the tightening trend outside the US persists or reverses.