Tariffs Fail to Hold Copper Prices Above Record Highs

Copper prices extended their retreat from record highs on Thursday, as data from China shifted attention away from tariff-driven flows that had pushed prices to new peaks. In New York, Comex copper for September delivery declined 0.5% to $6.5645 a pound (about $14,470 a tonne) by late morning.

The contract fell below its record high of $6.7775 set on Wednesday, marking a retreat of just over 3%. The price drop came as the market shifted focus from the impact of tariffs to the state of demand in China, the metal's largest consumer.

Data released by the National Bureau of Statistics showed that profits at China's industrial firms rose 11.2% in July from a year earlier, slowing from June's 15.1% pace to the weakest reading this year. Electronics and raw materials producers accounted for more than 16 percentage points of the 17.6% growth in profits so far this year.

Citi maintained its $14,500-a-tonne zero-to-three-month and $15,000 year-end targets for copper prices, citing shrinking visible inventories outside the US, constrained mine supply, and a soft scrap response to higher prices. Southern Copper continued to outperform, adding another 2.1% to $218.23.