US Copper Futures Fall Amid Tariff Uncertainty
US copper futures and shares of industry-related companies plummeted following reports that the White House has not made a decision on imposing tariffs on refined copper. According to Reuters, officials are weighing the risks and benefits of such a move, considering the potential impact on manufacturers' costs and domestic mining development.
Copper prices fell by 4.6% amid the uncertainty over potential tariffs, which had previously contributed to record global copper prices during the summer. Physical metal inventories flowed into US warehouses due to this uncertainty.
Company shares declined accordingly: Freeport-McMoRan (FCX) dropped by 8%, Southern Copper (SCCO) fell by 7%, and Teck Resources (TECK) lost 7.9%. Ero Copper (ERO) shares decreased by 8.6%, Capstone Copper (CS) by 8.2%, and First Quantum Minerals (FM) by 6.4%.
Crittenden analyst noted that the news could narrow the price gap between CME and LME contracts, potentially affecting copper prices on the London Metal Exchange.