Copper Prices Plummet Amid Uncertain US Copper Tariffs
Copper prices plummeted sharply in China today, with futures closing at 109,260 yuan/mt, down 3,030 yuan/mt from yesterday's trading day. Spot premiums averaged 65 yuan/mt, a decline of 20 yuan/mt month-over-month. Secondary copper raw material prices also fell by 1,000 yuan/mt compared to the previous month.
The price difference between copper cathode and copper scrap narrowed to 3,211 yuan/mt, down 1,907 yuan/mt from last month. This decline was attributed to the uncertain US copper tariffs, which affected both domestic and overseas copper prices. As a result, suppliers of secondary copper raw materials reduced their willingness to sell amid the price drop.
Downstream scrap utilization enterprises remained cautious during the sharp fluctuations in copper prices, leading to weak transactions for secondary copper raw materials. The SMM Secondary Copper Daily Review reported that affected by the US copper tariffs, copper prices in China and overseas pulled back sharply, resulting in considerable falls in secondary copper raw material prices.
According to SMM survey data, suppliers of secondary copper raw materials were already holding low inventory levels and shipping little, which further reduced their willingness to sell amid the price decline. As a result, the market sentiment remained weak during the day.