White House Tariff Decision Weighs on Copper Prices

Copper prices declined on Thursday after Reuters reported that the White House has yet to decide on refined copper tariffs, which could raise manufacturing costs. The London Metal Exchange's three-month copper fell 3.1% to $14,312 a metric ton by 10:39 GMT.

The US administration is under pressure ahead of mid-term elections in November to demonstrate its policies are lowering costs for American consumers and businesses. Copper has gained 16% this year as metal flowed into US warehouses ahead of potential tariffs on refined copper imports.

Ole Hansen, head of commodity strategy at Saxo Bank, said the update 'most certainly sent the cat in among the pigeons.' He also noted that whether current price levels are sustainable depends on whether these inventories ultimately become stranded or return to the global market if no tariffs are introduced.