Copper futures in New York soared 17 per cent after U.S. President Donald Trump announced plans to impose a 50% tariff on imports, a move expected to disrupt global metal supply chains significantly.
Comex contracts surged as much as 17% on Tuesday—their biggest single-day gain on record—before retreating over 4% in early Wednesday trading. Prices in New York traded at a substantial 24% premium compared to similar futures in London, which typically serves as the global pricing benchmark.
Whereas, on the London Metal Exchange (LME), copper prices were down 1.5 per cent $9,642 per metric ton on Wednesday, July 9. On the other hand, copper prices on the Shanghai Futures Exchange (SHFE) were also down 1.46 per cent to 78,320 yuan per metric ton.
If tariffs are implemented, they are likely to drive up costs across a wide range of sectors in the US economy, as copper is essential to numerous industries—from consumer electronics and cars to residential construction and data centers.
Meanwhile, the market could face disruptions due to the sharp US price premiums. Traders have been rushing to send record amounts of copper to the US in recent months to get ahead of potential tariffs, and the recent surge in Comex prices will further motivate them to complete any remaining shipments swiftly before the new duties take effect.
Where’s copper price headed?
According to a report by Motilal Oswal Financial Services, Copper prices have had a great run, approaching the psychologically important $10,000 threshold after a period of heightened volatility and uncertainty.
“ We highlighted that the market remained delicately balanced between surplus projections and persistent demand concerns and We now foresee a compelling case for copper to rally ₹980- ₹1020 on the domestic front & $10,800 and $11,000 on the LME in the near term,” the brokerage firm said.
Navneet Damani, Group Senior VP – Commodity Research, Motilal Oswal Financial Services, said that sentiment across the copper complex is shifting and market participants who were previously positioned cautiously are gradually covering shorts and converting to longs.
“ Commodity trading advisors and systematic funds have reversed their bets as stronger demand and lower inventories have made them rethink the positions. This shift in sentiment often comes before longer rallies, especially when the broader economy is improving,” Damani said.
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