FX.co ★ Copper Stabilizes After Sharp Drop

Copper futures remained steady around $5.8 per ounce on Friday, stabilizing after a significant two-day decrease as investors reevaluated their outlook on supply constraints and robust global demand. Earlier in the week, prices had reached unprecedented levels, driven by concerns that the Trump administration might introduce new tariffs on refined metals, which could redirect shipments to the US and tighten supplies in other regions. The risks associated with supply were emphasized further by statements from a BHP Group executive in Australia, who cautioned that the copper market might encounter a structural deficit between 2030 and 2035, thereby calling for increased production. On the demand front, optimism is bolstered by expectations of heightened consumption linked to power grid upgrades, investments in renewable energy, and the growth of data center infrastructure. Nonetheless, the persistent slowdown in China's construction sector, a major consumer of copper, continues to pose a potential challenge to copper prices.