Mercuria Energy Group Ltd. has placed orders for approximately $500 million worth of copper to be withdrawn from London Metal Exchange (LME)-overseen warehouses, as the trading house positions itself for a potential global supply crunch triggered by possible U.S. tariffs. On Wednesday, the firm was the key party behind requests to withdraw about 50,000 tons of copper from LME depots, according to unnamed sources familiar with private trading activity. This cancellation of stock marked the largest in over a decade and helped drive LME copper prices toward record highs above $11,500 per ton.

Copper pricing dynamics and trade flows have been disrupted since former U.S. President Donald Trump announced plans in February to impose tariffs on the metal to boost domestic supply. The decision caused New York futures to spike above LME levels, spurring a record surge in U.S. copper imports as traders including Mercuria, Trafigura Group, and Glencore Plc capitalized on arbitrage opportunities. Though Trump unexpectedly exempted commodity-grade copper from tariffs in late July, trading houses have recently resumed rushing to ship more metal to U.S. shores—fueled by Trump’s pledge to revisit primary copper duty plans next year and a fresh NY futures premium that allows front-loading imports before any levies take effect.

Kostas Bintas, who joined Mercuria last year to lead its rapid expansion into metals markets, told Bloomberg last week he expects copper prices to push deeper into record territory in the coming weeks as trade momentum builds. He warned non-U.S. buyers could face critical shortages in the first quarter of next year, noting: “This ...