FX.co ★ Copper Eases from Record High

Copper futures in the United States experienced a decline to $5.6 per pound on Monday, after reaching a peak of $5.86 earlier in the session. This drop came as markets evaluated whether the recent uptick, fueled by concerns over scarcity, had been exaggerated. Despite this pullback, copper is on track to achieve an 8% increase this month and a more than 40% rise over the year. The growth in copper production has recently faced challenges due to the suspension of operations at Freeport-McMoRan's Grasberg mine in Indonesia, which accounts for 3% of global supply, following a fatal incident. This has heightened supply risks from Chile and Peru, where protests by workers against mining companies have been ongoing. Adding to the uncertainty, US President Trump has reiterated potential threats of imposing tariffs on various forms of copper, which had previously been exempt from this year's levies. On the demand side, the metal continues to be supported by its extensive application in electrification technologies, as governments shift priorities away from fossil fuels. Additionally, increased capital expenditure in data centers and AI infrastructure is expected to sustain copper demand.