Copper futures surged above $4.90 per pound on Friday, reaching a nine-month high and surpassing LME contracts by more than $0.40.
Copper futures rise on US tariff expectations
This jump came amid expectations that the US may impose tariffs on copper, potentially straining the already limited capacity of local smelters. President Trump signed an executive order to review copper imports, following earlier comments suggesting tariffs on the metal. While the tariffs were expected later this year, the recent escalation in base metal tariffs on Canada raised concerns that copper tariffs could be implemented sooner. Such a move would increase reliance on domestic smelting capacity, which is limited to just two major smelters, given that the US imports nearly half of its copper.
China copper supply abundant amid overcapacity
Meanwhile, supply remained plentiful in China, with smelter treatment charges still below zero, reflecting significant overcapacity in the country's refined copper production.
