FX.co ★ Copper Plunges More Than 4%

Copper futures witnessed a significant decline of over 4%, dropping to below $4.9 per pound on Friday. This downturn followed a statement from President Trump, who indicated the potential for a "massive increase" in tariffs on Chinese imports. The proposed measures are in retaliation to China's recent "hostile" export restrictions on rare-earth elements and associated technologies. Concurrently, global supply pressures persist due to disruptions in Chile and Indonesia. In Chile, state-owned miner Codelco reported a production of 93,400 metric tons in August, marking its lowest monthly output in over twenty years and a 25% decrease compared to the previous year. This drop in productivity is attributable to a tragic incident on July 31 at the El Teniente mine, which resulted in the deaths of six workers, injuries to nine, and an operational shutdown exceeding a week. Consequently, Codelco has had to revise its annual production targets downwards. Similarly, production constraints persist at Indonesia’s Grasberg mine following a fatal accident last month. In addition, Canada's Teck Resources has adjusted its annual output forecast to a range of 170,000–190,000 metric tons, down from the initial projection of 210,000–230,000 metric tons.