US copper futures fall amid tariff uncertainty — OilPrice
In the United States, copper futures and shares of industry-related companies fell after Reuters reported that the White House has not yet made a decision on imposing tariffs on refined copper. As OilPrice reports, US copper prices fell by 4.6% amid this information.
No decision on tariffs
According to Reuters, officials in President Donald Trump’s administration are weighing the risk of increased costs for manufacturers due to more expensive copper against potential benefits for the development of domestic mining. The agency’s sources familiar with the matter noted that the administration is also focused on the affordability of goods and services ahead of the midterm elections in November.
Uncertainty over potential tariffs had previously contributed to global copper prices rising to record levels during the summer, while physical metal inventories were flowing into US warehouses.
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Company shares decline
Amid the news, Freeport-McMoRan shares fell by 8%, Southern Copper by 7%, and Teck Resources by 7.9%. Ero Copper shares dropped by 8.6%, Capstone Copper by 8.2%, and First Quantum Minerals by 6.4%.
Crittenden analyst noted in a client note that the news could narrow the price gap between CME and LME contracts. In his assessment, this had previously benefited companies selling copper in the United States, including Freeport-McMoRan, and could negatively affect the price of copper on the London Metal Exchange.
As of 10:00 a.m. US Eastern Time, Goldman Sachs’ basket of US metals stocks was down nearly 3%. Reports about copper tariffs extended the weakness to the broader metals market.
