FX.co ★ Copper Holds Most of Rebound

Copper futures in the U.S. maintained their position above $4.3 per pound on Thursday, largely sustaining their recovery after reaching three-month lows two sessions ago. This recovery followed the announcement from U.S. President Trump regarding a 90-day pause on his reciprocal tariff package. Initially, this package did not include copper, instead imposing a 10% levy on non-retaliating countries, thereby alleviating recession concerns in the US economy and raising expectations for manufacturing demand. Despite this, copper futures remain over 20% below their historical peak of $5.3, recorded on March 26th. President Trump has telegraphed his intention to implement tariffs specifically targeting copper in the coming weeks. This has widened the price gap between copper futures in the U.S. and equivalent contracts on the London Metal Exchange, due to the potential strain trade barriers could impose on the limited U.S. copper smelting capacity. Additionally, the trade conflict with China has resulted in heightened tariffs from both sides, further challenging the consistent flow of U.S. copper scrap exports to China.