Copper futures fell to around $4.25 per pound on Monday, continuing the decline from the previous session as market sentiment was weighed down by US President Donald Trump’s threat to impose tariffs and sanctions on Colombia.
Copper falls on trade tensions, China slowdown
This threat followed Colombia’s decision to block two US military aircraft carrying deported migrants, a move linked to the ongoing crackdown on illegal immigration. The drop in copper prices was further exacerbated by disappointing economic data from China, the world’s largest copper consumer. Manufacturing activity in China unexpectedly contracted, and growth in the services sector slowed sharply, signaling a potential slowdown in demand. Caution also prevailed ahead of China’s upcoming week-long Lunar New Year holiday as markets braced for possible disruptions.
Freeport-McMoRan warns of Q1 copper output drop
On top of this, Freeport-McMoRan, a major copper producer, reported that it missed its fourth-quarter production targets and issued a warning of a significant drop in copper output for the first quarter, adding further pressure on prices.
