Copper Holds July Plunge

Copper futures were steady around the $4.4 per pound mark since its record-setting single session plunge of nearly 20% in late July after the US government removed refined copper from its tariffed goods list. The US government had threatened to place a broad tariff on copper goods but changed policy last minute to only apply to imports of semi-finished copper products in wires and pipes. Therefore, purchases of ore, cathodes, and concentrates were waived from taxation, among the main materials that are imported by the US. The move triggered a record-setting selloff in copper futures of nearly 20% within the session, followed by the unwinding of the accumulation of copper futures and warrants in the US as traders shipped metal before tariffs were triggered. In the meantime, top Chinese copper miner Zijin noted that copper demand in China remains robust on datacenters and electrification technologies, despite evidence of softer manufacturing activity per the latest official PMIs.