Copper price plummets amid fears of Trump tariffs hurting demand

Copper prices tumbled on Thursday amid growing concerns that President Donald Trump’s newly imposed tariffs could severely impact demand for industrial commodities. Although metals were largely excluded from the sweeping trade restrictions, fears remain that the broader economic effects of Trump’s policies could slow global growth and hurt consumption.Copper takes a hitOn the COMEX exchange in New York, copper for May delivery fell to $4.8390 per pound ($10,645 per tonne), marking a 10% decline from last week’s record high. Meanwhile, copper on the London Metal Exchange slid as much as 2% to $9,510.50 per tonne, with aluminum also dropping to its lowest level in nearly seven months.“Industrial metals are under short-term pressure, as investors pour money into safe-haven assets and sell risk assets,” said Jia Zheng, a senior trader at Shanghai Dongwu Jiuying Investment Management Co., in an interview with Bloomberg.Adding to the uncertainty, China—facing a 54% tariff on its shipments to the U.S.—has vowed countermeasures, while Japan has urged the Trump administration to grant exemptions. The European Union, hit with a 20% levy—double the global minimum of 10%—is also expected to retaliate.Copper stocks tumbleThe sharp decline in copper prices had an immediate effect on major copper producers, with most of them experiencing significant losses in the stock market.Teck (TSE: TECK.B) suffered the steepest decline, dropping 8.2%. Freeport-McMoRan (NYSE: FCX) also took a major hit, plunging 7.9%. Glencore plc (LON: GLEN) and Anglo American plc (LON: AAL) saw their shares decline 6.1% and 6.3%, respectively, amid the broader market sell-off.BHP (NYSE: BHP) and Rio Tinto (NYSE: RIO) posted losses of 1.9% and 1.2%, respectively.Market analysts warn that copper prices may face continued downward pressure as investors digest the full implications of the new tariffs. Citigroup analysts, including Max Layton, predict that copper prices could slide further to $8,500 per tonne in the second quarter as tariff-related concerns weigh on global growth expectations.At the same time, a substantial amount of physical copper—potentially up to 500,000 tonnes—could be redirected to the U.S. to take advantage of the ongoing arbitrage opportunity, according to trade house Mercuria.Copper price dropped on Thursday amid fears that President Donald Trump’s new tariffs will end up crushing demand for industrial commodities.Metals were largely excluded from Trump sweaping new tariffs, but the fear is that danger is that Trump’s push to remake global trade will hurt the world economy. Copper for May delivery fell as $4.8390 per lb. ($10,645 per tonne) on the COMEX in New York, down 10% compared to a record high achieved last week.Copper on the London Metal Exchange fell as much as 2% to $9,510.50 a tonne, while aluminum sank to its lowest in nearly seven months. “Industrial metals are under short-term pressure, as investors pour money into safe-haven assets, and sell risk assets,” Jia Zheng, a senior trader at Shanghai Dongwu Jiuying Investment Management Co, told Bloomberg. “The market is closely watching retaliatory measures by U.S. trading partners, which could introduce more uncertainty into the global economy.”China, which now faces a tariff of 54% on its shipments to the US, vowed countermeasures to defend its interests, while Japan again urged Trump to exempt its goods. The European Union was hit a 20% levy, double the 10% rate Trump announced as a global minimum.Metals are being handled under a separate “Section 232” tariff regime. Aluminum already has a blanket 25% fee on all US imports, while tariffs on copper are expected within weeks. Zinc, nickel, tin and a wide range of other commodities were also exempted from the country-specific tariffs, though they could be subject to Section 232 probes in future.“Prices face near-term headwinds from US tariffs news and a halt to tariff-related U.S.-bound copper shipments,” Citigroup Inc. analysts including Max Layton said in an emailed note. The metal will extend losses to $8,500 a ton by the second quarter “as tariff hikes hit global growth expectations, copper consumption and risk appetite.”Meanwhile, up to half a million tons of physical copper could be heading towards the U.S. to profit from the unprecedented arbitrage opportunity, according to trade house Mercuria.Stocks in RedSell off for copper stocks Weiter zum vollständigen Artikel bei Mining.com Weiter zum vollständigen Artikel bei Mining.com