Copper futures remained above $5.10 per pound on Thursday, nearing a three-month peak as global supply constraints and uncertainties around tariffs spurred buying interest. Market participants are rerouting copper shipments to the U.S. in anticipation of potential import tariffs, resulting in significant inventory reductions at the London Metal Exchange and Shanghai Futures Exchange. There is mounting speculation about the implementation of a 10% tariff on U.S. copper imports, which is causing a wider price differential between Comex and LME copper contracts, currently standing at approximately $1,300 per ton. Analysts caution, however, that this recent price surge could quickly reverse if U.S. demand declines or if tariff announcements fall short of expectations. Simultaneously, copper prices are bolstered by strong demand prospects from China. Notably, a private survey revealed that Chinese manufacturing activity surprisingly rebounded to growth in June, indicating that the world’s largest copper consumer might be benefiting from reduced trade tensions with the U.S.
The material has been provided by InstaForex Company – www.instaforex.com
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