FX.co ★ Copper Prices Fall as US-Bound Shipments Slow

Copper futures fell below $5.50 per pound on Wednesday, reversing the previous session's gains due to diminishing momentum in redirecting shipments to the United States, just as the imposition of new tariffs approaches. This deceleration in demand for US-bound copper has impacted the global copper supply chain, evident in the sharp decline in inventory withdrawal requests from London Metal Exchange warehouses. This trend is occurring as markets prepare for President Donald Trump's announcement of a 50% tariff on copper imports, which is scheduled to take effect on August 1. The tariff aims to stimulate domestic production and lessen reliance on foreign refined copper. Currently, the United States produces slightly over half of the refined copper it consumes each year, with Arizona contributing more than two-thirds of the nation's output. In 2024, over 90% of US copper imports originated from Chile, Canada, and Peru.