Copper Prices Plummet on Tariff Uncertainty
The copper market experienced a significant crash on Thursday, with prices plummeting by over 4% after reaching an all-time high of $14,875 per tonne on the London Metal Exchange.
The sudden drop was attributed to traders taking profits due to uncertainty surrounding US tariffs on refined copper. The White House is still deciding whether to impose tariffs, which could impact manufacturing costs and domestic mining and refining activities.
Despite the short-term volatility, experts believe that underlying supply conditions remain tight, and prices may stabilize once market expectations reset. Supply growth is constrained, while longer-term structural demand provides a floor for the market.
Copper's correlation with the tech-heavy Nasdaq 100 has increased in recent weeks, reflecting optimism around artificial intelligence and data centers. Demand in China will be crucial as the market enters its traditional peak manufacturing season.