Copper futures declined toward $6.50 per pound on Tuesday, approaching one-month lows, as expectations mounted that the United States may scrap proposed tariffs on refined copper imports. Market participants are increasingly betting that the Trump administration will set aside the tariff plan ahead of the midterm elections, despite tightening global supplies and persistent inflationary pressures.
Copper prices had hit record highs last month after traders diverted shipments to US warehouses in anticipation of the potential tariffs, reducing availability in other key markets. Prices also found support from supply disruptions in Chile, the world’s largest copper producer, where labor strikes and adverse weather hindered mining operations.
On the demand side, copper continued to be underpinned by robust growth prospects in data center infrastructure, semiconductor manufacturing, and battery energy storage systems.
