Copper futures fell to approximately $4.26 per pound on Tuesday, reaching a one-week low after U.S. President Donald Trump threatened major economies, including China, with tariffs as part of broader negotiations, heightening the risk of a global trade war.
Copper extends fall on Trump tariff threats
Such a scenario could weaken demand for metals like copper, which heavily depends on China's economic recovery.
Market sentiment was also subdued ahead of the Lunar New Year holiday in China and key interest rate decisions from the Bank of Japan and the U.S. Federal Reserve in the coming days. However, optimism persists that China will deliver on its promises of additional economic stimulus, with state media reporting that the People’s Bank of China might lower the reserve requirement ratio for banks later this month.
Chile revises its copper production forecast
On the supply side, Chile revised its copper production forecast, now projecting 5.54 million tons by 2034, down from an earlier estimate of 6.34 million tons.
