Copper futures surged above $4.7 per pound on Thursday, reaching fresh multi-month highs, as concerns continued over potential tariffs from US President Donald Trump.
Copper rises on trade war concerns
After imposing 25% tariffs on steel and aluminum, there were lingering fears that copper could be targeted next, which would increase costs for US buyers, forcing them to pay a premium above LME prices. This could further disrupt the global supply chain, already affected by trade tensions. In addition, the latest data showed that traders raised their net long position in copper for the sixth consecutive week, reaching the highest level since early November.
Rally fueled by strong US manufacturing activity
This rally was fueled by strong manufacturing activity in the US, where industrial production has been robust, alongside expectations of further economic stimulus in China, the world’s largest consumer of copper. The combination of tight supply and healthy demand, particularly from key sectors like construction and electric vehicles, is contributing to the positive outlook for copper prices in the near term.
