Copper Prices Hinge on US Tariffs as Chile and Congo Weigh In
Copper's price has surged over 17% this year on the Comex, hitting an all-time high near $6.90 per pound in early August before experiencing a round of profit-taking.
The main driver behind this rally remains the pending US decision on copper import tariffs, which has encouraged importers to stockpile metal at American warehouses, tighting availability elsewhere.
Supply concerns have also contributed to the price increase, with Chile's Codelco warning that development work at its El Teniente mine may be suspended for up to two years due to geotechnical issues, and the Democratic Republic of Congo issuing a ban on copper and cobalt concentrate exports, although this has had a limited physical impact.
The key level to watch is $6.50 per pound, with buyers defending it as the market probes above Consolidation Block 2. A bullish scenario would see prices revisit $6.86 per pound if tariffs are confirmed, while a bearish scenario could see copper drop to $5.60 per pound if importers unwind their stockpiles and redirect metal back to other markets.