FX.co ★ Copper Holds Near Four-Month Lows

On Monday, copper futures hovered around $4.40 per pound, remaining close to their lowest levels since the beginning of April. This decline reflects worries about the reduction of excessive U.S. inventories, which could suppress short-term demand. Previously, traders had expedited shipments to the U.S., anticipating upcoming tariffs, thus temporarily boosting domestic premiums. Additionally, the market sentiment is affected by indications of weakening global demand; notably, China's Yangshan copper premium has dropped by 50% since reaching a peak in May. Last week, copper prices tumbled over 30% following the announcement by President Donald Trump that new U.S. tariffs would target only semi-finished products, such as wires and pipes, while key imports like ore, cathodes, and concentrates, which constitute the majority of copper imports, would remain exempt.