Copper futures hovered around $6.45 per pound on Friday after tumbling nearly 5% in the previous session, dragged down by reports that the US is reconsidering plans to impose import tariffs on refined metals. According to reports, US officials are worried that the proposed duties could drive domestic copper prices even higher and raise manufacturing costs.
The metal had surged to record highs earlier in the week as traders diverted shipments to US warehouses to exploit tariff-related gains in local prices, exacerbating tightness in global supply. At the same time, the market has been grappling with persistent shortages of sulfuric acid, a critical input for major copper refiners worldwide, after supply constraints in GCC countries prompted China to halt exports.
Mined supply has also deteriorated. Codelco and Freeport-McMoRan have reportedly recorded double-digit declines in output, following a recent assessment by the International Copper Study Group indicating a 1.1% drop in global mine production in the first half of the year.
