Copper Prices Plummet as Tariff Expectations Cool

Copper prices took a sharp downturn after reaching record highs due to cooling expectations for US tariffs on copper cathode. According to SMM Macro Weekly Review, the US August non-farm payrolls exceeded market expectations, prompting the market to raise hopes for a US Fed rate hike in September.

This led to increased expectations of higher interest rates, which weighed on copper prices. However, at the beginning of the week, a stronger yen pushed the US dollar index lower, causing copper prices to rise and hit record highs for both LME copper and COMEX copper.

As the week progressed, reports emerged that the White House had not yet decided whether to impose tariffs on copper cathode. This cooled expectations for US copper tariff policy, leading to a sharp pullback in copper prices.