Copper futures climbed toward $4.90 per pound on Monday, approaching a ten-month high, as China’s latest stimulus measures fueled expectations of stronger demand in the world’s largest copper consumer.
Copper rises on China stimulus boost
The newly announced policy package includes initiatives to boost household income, encourage consumer spending, and support population growth—key factors that could drive industrial activity and increase copper usage in construction, manufacturing, and energy sectors.
Adding to the bullish sentiment, speculation is growing that U.S. President Donald Trump may introduce tariffs on copper imports, a move that could strain the already limited domestic smelting capacity. Currently, the U.S. imports nearly half of its copper supply, relying primarily on just two major smelters for domestic production. If tariffs are imposed, it could disrupt supply chains and create upward pressure on copper prices, particularly as the U.S. seeks to expand its domestic refining capacity to meet growing demand from the renewable energy and electric vehicle sectors.
Concerns on trade war escalation
While reports suggest these tariffs could be implemented later this year, recent escalations in base metal tariffs on Canadian exports by the White House have raised concerns that copper duties might come sooner than expected. Investors are closely monitoring trade policy developments and China's economic recovery signals, as both factors will play a crucial role in shaping copper’s price trajectory in the coming months.
