Copper Prices Plummet Amid Fed Rate Hike Bets and Tariff Uncertainty

Copper prices plummeted on September 11 due to increased expectations of a Federal Reserve rate hike and uncertainty over U.S. tariffs, according to Mysteel.

The latest inflation data showed higher-than-expected numbers, which heightened the probability of a rate increase in September. This sent shockwaves through the copper market, causing prices to drop across futures and spot markets.

Market sources reported that the U.S. has yet to decide whether to impose tariffs on refined copper, leading to concerns over future inventory flows and adding pressure on copper prices. The COMEX copper premium over LME fell sharply from its previous high of around $500/tonne, further exacerbating market sentiment.

In China, however, refined copper spot trading experienced a significant surge as copper prices dropped, prompting downstream enterprises to stockpile ahead of the weekend. Scrap trading saw a substantial decline due to falling prices and narrowing profits.