FX.co ★ Copper Remains Under Pressure

Copper futures declined slightly to approximately $4.62 per pound by Friday, concluding a tumultuous week on a downbeat note as optimism waned over the temporary US-China trade truce. Although the initial arrangement to reduce tariffs for a 90-day period lent some support, experts cautioned that the lack of a comprehensive long-term agreement continues to overshadow the global economic landscape. Furthermore, US authorities have intensified efforts to reduce reliance on Chinese imports, raising concerns about extended disruptions in supply chains. Adding to the mounting pressure, the International Copper Study Group has revised its global surplus forecast for 2025, now projecting it to be almost 300,000 tonnes. This adjustment derives from increasing production coupled with declining demand. The group highlighted that ongoing uncertainties in global trade policies have led to a downward adjustment in the anticipated growth of copper usage compared to their forecasts made in September 2024.