Copper futures in the US trimmed gains to $5 per pound on Friday after briefly surpassing $5.1 earlier in the session, as the strengthening dollar and uncertainty over economic policies weighed on manufacturing sentiment.
Copper inches lower from peaks
Despite the pullback, prices remained elevated due to pressure on domestic smelters, driven by the threat of sanctions from President Trump. This lifted the premium on CME futures to $0.55 per pound, one of its highest levels on record.
President Trump signed an executive order to launch a review of copper imports, following his earlier remarks before Congress indicating potential tariffs on the metal.
China demand remains robust
If implemented, such measures would heighten reliance on domestic production, which remains constrained, as the US imports nearly half of its copper and has only two major smelting facilities. Meanwhile, demand from China, the world’s largest copper consumer, remained robust, supported by an uptick in manufacturing activity and government commitments to increased deficit spending.
