FX.co ★ Copper Inches Down from 1-Month High

Copper futures in the United States were recorded at $4.5 per pound, retreating from the one-month peak of $4.6 observed on September 3rd. This adjustment came as markets balanced the slowing demand against the prospect of reduced refining capabilities in China. The latest NBS PMI indicated a decline in China's manufacturing activity for August, highlighting the limited effect of Beijing's earlier economic interventions. Concurrently, the Chinese government discontinued subsidies for recycling plants that process scrap copper, thereby boosting margins for ore refiners who have been grappling with adverse treatment charges. As a result, copper futures slightly outpaced multi-month lows following the US government's decision to exclude refined copper from its list of tariffed goods, choosing instead to impose duties on semi-finished copper products. This measure sparked a historic 20% sell-off in copper futures within the trading session due to the unwinding of warrants and metals pre-shipped to the US to circumvent impending taxes.