Mining Stocks Plummet Amid Copper Price Crash and Tariff Uncertainty

The mining sector saw a significant downturn on Thursday as copper prices plummeted and gold slid. The decline was triggered by a US producer price report, which pushed the odds of a Federal Reserve rate increase next week to around 70%. Additionally, crude oil rose above $105 a barrel, putting further pressure on metals.

Copper stocks took a hit, with Freeport-McMoRan and Southern Copper leading the decline. The largest listed copper producer, Freeport-McMoRan, lost over 7% in early afternoon trade, while Teck Resources fell by more than 6%. Other major mining companies such as Anglo American, Lundin Mining, and First Quantum also saw significant losses.

The White House's decision to stall refined copper tariffs further contributed to the market downturn. The administration is reportedly weighing the risk of higher manufacturing costs ahead of November's midterm elections. A White House official confirmed that the Commerce Department delivered its update by the June 30 deadline, but noted that the administration continues to evaluate all options to reshore copper and other critical manufacturing back to the United States.

The market had been anticipating a blanket tariff on refined copper, which would have added to the metal's premium. However, with the tariff plan stalled, the incentive to return metal to international markets is reduced. Analyst Jacob White from Sprott Asset Management noted that 'as long as tariff policy remains unresolved, that possibility reduces the incentive to return metal to international markets.'

The downturn in copper prices was mirrored by gold and silver, which fell by 2.1% and 5.9%, respectively. The decline left copper up 16% in 2026 but around 5% below Wednesday's record settlement.