Copper Price Volatility Becomes New Normal Amid Tariffs and Speculation
New norms for copper price volatility have taken hold since February last year, driven by tariffs, speculative trading and the metal's expanding role in electrification and energy transmission.
The daily price swings of 14 to 20 cents are now viewed as ordinary rather than exceptional, according to speakers at a Scrap Expo session titled Copper: A Global Commodity.
Mark Hadacek, director of nonferrous marketing at Alter Metal Recycling, said the choppiness seen since tariff discussions began has become somewhat standard. He described a 20-cent daily swing as par for the course and added that his company employs hedging strategies to manage volatility.
The elevated volatility emerged after President Donald Trump launched an investigation into copper imports early in his second term, leading to tariffs being levied on semifinished copper and copper-intensive derivative products. The market anticipates further action related to the investigation, keeping prices volatile.