FX.co ★ Copper Extends Decline from Record High

Copper futures in the United States have decreased to $5.72 per pound, continuing their decline from a peak of $6.1 recorded on January 14th. This decrease is attributed to emerging indications of a weakening demand that temporarily outstripped ongoing worries about a constrained supply. The Yangshan import premium, an indicator of the additional cost manufacturers incur to import physical metal from bonded warehouses, has dropped by over 50%. This decline reflects reduced purchasing activity, as historically high base metal prices strain corporate profit margins. Additionally, copper prices have fallen following the U.S.'s decision to delay imposing tariffs on critical minerals. Concurrently, China has intensified its crackdown on high-frequency trading, a key component of the commodities market. Copper prices had reached new record highs the previous week, fueled by optimism regarding the worldwide transition to renewable energy and supply concerns linked to the possibility of U.S. tariffs, which created tighter conditions in both the London and Asian markets.