FX.co ★ Copper Gains Traction to 1-Month High

In September, US copper futures exceeded $4.56 per pound, reaching a one-month peak as new regulations in China temporarily restricted supply from the leading copper producer globally. China's ongoing efforts to address overcapacity led to the withdrawal of subsidies for plants engaged in recycling scrap copper, which in turn bolstered the profitability of ore refiners grappling with negative treatment charges. This situation provided some relief for US copper futures, following a previous decline triggered by the US government's decision to exclude refined copper from its list of tariffed goods. The announcement clarified that tariffs would solely affect imports of semi-finished copper products such as wires and pipes, alleviating concerns about broader tariffs. Consequently, this led to an unprecedented selloff in copper futures, with prices dropping nearly 20% during the session, as investors unwound warrants and cleared metal shipments destined for the US to avoid impending taxes.