FX.co ★ Copper Holds Steady as Supply Risks Persist

Copper futures stabilized at approximately $4.93 per pound on Thursday, halting a two-day downturn. This pause came as decreasing treatment and refining charges posed a risk to refined output by compressing producer margins. Importers from nations like Japan, South Korea, and Spain expressed concerns that the plummeting processing fees could jeopardize the industry's viability. Furthermore, the metal found support through anticipated additional interest rate cuts by the Federal Reserve, following remarks by Governor Stephen Miran. Miran highlighted that escalating trade tensions have intensified economic uncertainty, emphasizing the urgency for more rapid policy adjustments. Concurrently, in the realm of trade, senior US officials have criticized China's restrictions on rare earth exports, suggesting they could disrupt global supply chains, although China defended its decisions. Additionally, US Treasury Secretary Scott Bessent suggested that the ongoing US-China trade ceasefire might be prolonged beyond the initial three-month period if China postpones its proposed rare earth export limitations.