FX.co ★ Copper Firms Up Near Record High

Copper futures have risen to approximately $5.73 per pound as of Wednesday, staying near record levels. This increase comes on the heels of improved global market sentiment after a trade deal between the United States and Japan was announced. The deal has added to the positive momentum in commodities markets. Investors are also preparing for the introduction of a significant 50% US tariff on copper imports, set to begin on August 1. The Trump administration has confirmed that these tariffs will apply to refined copper products, such as traded cathode, as part of a larger initiative to support the domestic copper industry and lessen dependence on imported refined copper. This policy change has significantly increased the premium on US copper prices compared to the London Metal Exchange benchmarks, with the price gap reaching a historic 25%. This disparity reflects both declining international prices and anticipated restrictions in the US supply, as traders have been stockpiling copper domestically in expectation of rising tariffs since February.