White House Tariff Uncertainty Hits Copper Prices Hard
Copper's recent rally has come to an abrupt end, with prices stabilizing after a sharp 3.6% decline on Thursday.
The drop was triggered by Reuters' report that the White House had yet to decide whether to impose copper tariffs, which sent shockwaves through the market.
On the London Metal Exchange (LME), three-month copper prices hovered near $14,238 a metric ton after retreating from Thursday's record high of $14,875. This puts the metal on track for its first weekly decline since June.
Despite some traders positioning for further gains and using Thursday's heavy trading to cut exposure once the tariff story looked less certain, inventories remain uneven. LME stocks held around 117,600 tons, while Shanghai Futures Exchange stocks fell 13% to 54,780 tons.
The real tell was in pricing: the LME spread flipped into contango, meaning copper for delivery in three months now costs more than immediate delivery, with cash at a $4.50-a-ton discount.