FX.co ★ Copper Rises on China’s Industrial Support Measures

Copper futures rose to approximately $5.6 per pound on Monday, approaching record highs following a commitment from China's industry ministry to stabilize growth in crucial sectors, including machinery, automobiles, and electrical equipment. This strategic initiative aims to modernize production processes, which could significantly increase the demand for industrial metals. The action plan encompasses a total of 10 key sectors, such as steel, nonferrous metals, petrochemicals, and construction materials, thus providing additional support to the metals market. Earlier this month, copper prices reached unprecedented levels after US President Donald Trump disclosed a 50% tariff on copper imports effective from August 1st. This measure is designed to strengthen the domestic copper industry and reduce reliance on refined imports. Consequently, the premium between US copper and equivalent futures on the London Metal Exchange surged to a record 25%, as traders expedited shipments to the US in anticipation of the tariff implementation.