White House Tariff Hesitancy Sinks Copper Prices

Copper prices plummeted on Thursday after Reuters reported that the White House was hesitant to impose refined copper tariffs due to concerns over higher production costs. The three-month copper price on the London Metal Exchange (LME) dropped by 3.1% to $14,312 per metric ton.

Comex October copper futures fell even further, declining by 4.2% to $6.5355 per pound or $14,408 per ton. This reduced the premium over LME prices.

Ole Hansen, head of commodity strategy at Saxo Bank, commented that the update had 'sent the cat among the pigeons.' He noted that copper stocks in COMEX warehouses have reached a record high of 696,259 tons due to inflows ahead of potential tariffs on refined copper imports.

Hansen suggested that whether these inventories become stranded or return to the global market if no tariffs are introduced could determine if current price levels are sustainable. The premium of the LME cash contract over the three-month benchmark sank to a discount for the first time since late July, indicating reduced concerns about near-term supplies.