Copper prices experienced a downturn as uncertainty surrounding US tariffs stoked concerns about future demand. According to ANZ, a recent US Supreme Court ruling could mean that China faces less severe tariffs, which could potentially boost its metal-intensive exports. However, ANZ cautioned that this relief might be short-lived, given the potential for further shifts in US trade policy. It also clarified that the ruling is distinct from existing sectoral tariffs on copper products, as well as aluminium and steel. ANZ is a banking and financial services company, providing a range of products and services to retail, small business, corporate and institutional clients.
Market participants are closely monitoring the return of Chinese traders following the Lunar New Year holiday, with markets scheduled to reopen on Tuesday. Rising physical prices have also sparked concerns that China, the world’s leading consumer of copper, may pause its purchasing activity. This anticipated shift in demand is contributing to the downward pressure on prices.
Recent trading activity reflects these concerns. Prices for copper traded on the London Metal Exchange were last down 0.7 per cent, settling at $US12,868.50. The market remains sensitive to developments in US trade policy and any signals regarding China’s copper demand in the coming weeks as trading activity picks up following the holiday.
