Copper 02 (Nov 12 - Dec 25)

[behappyalways]

Trump May Implement Copper Import Tariffs Within Weeks - BBG
https://x.com/Mayhem4Markets/status/1904720527299670154

[winston]

BNP Paribas predicts copper ‘collapse’ once tariffs take effect

Copper prices are set to “collapse” over the next few months as a worldwide dash to ship the metal to the US ahead of possible tariffs comes to an end.

Efforts to front-load US imports ahead of tariffs proposed by US President Donald Trump would leave the rest of the world critically short of metal.

However, prices have come under pressure after Bloomberg reported that the US administration aims to introduce tariffs on copper imports within weeks, instead of months as had been widely anticipated.

A swift implementation would leave little time for traders to divert more metal to the US, and BNP sees prices slumping to US$8,500 a tonne by the end of the second quarter as America’s appetite for metal dries up.

Source: Bloomberg

https://www.theedgesingapore.com/news/c ... ake-effect

[winston]

Why tariff fears have copper following gold to record high

Futures prices have hit record highs on New York’s Comex, leading to a premium over the international benchmark in London – similar to the disconnect seen in the gold market.

That has created a lucrative opportunity for traders to ship the crucial industrial metal to America from cheaper overseas markets spanning Africa to Asia.

But the levies could be introduced within weeks instead of the months-long timeframe that had been widely anticipated, risking a painful end for traders if their copper cargoes arrive on US shores after any tariffs go into effect.

At late March, about 500,000 tonnes of copper was en route to the US, compared with normal monthly volumes of around 70,000 tonnes.

While the US has significant mines, producing 850,000 tonnes of copper last year, its consumption of the refined metal reached 1.6 million tonnes.

Imports are therefore essential to fill the gap. Around 38 per cent of deliveries come from Chile, followed by 28 per cent from Canada and 8 per cent from Mexico.

The Trump administration’s focus on copper and the potential tariffs to come are part of a broader effort to boost US production of critical minerals.

Source: Bloomberg

https://www.businesstimes.com.sg/compan ... ecord-high