FX.co ★ Copper Falls on Renewed Demand Concerns

Copper futures declined to approach $5 per pound on Friday, marking a second consecutive session of losses due to renewed concerns about demand. Market analysts observed a decrease in interest from Chinese manufacturers as prices remained high, dampening the bullish trend that had pushed copper to its highest level in three months earlier in the week. The recent surge was driven by tightening global supplies and uncertainties related to tariffs, causing traders to reroute shipments to the US in anticipation of possible import duties. This redirection resulted in significant inventory depletions at both the London Metal Exchange and the Shanghai Futures Exchange. Nonetheless, experts warned that the rally could swiftly reverse if US demand decreases or if upcoming tariff announcements do not meet market expectations.